Price has broken through horizontal channel early this week leading to a short burst of impulse buying. With the lack of fundamentals in the currently heavily overbought market, we can expect a drop to come upon the slightest trigger. While we cannot predict when the breakdown will be, we can still expect a retest of 2974 (Target 1) some time this week. If the week closes below 2974, it would suggest a false break on the weekly timeframe and a fall to 2882 (Target 2) and 2781 (Target 3) will be imminent.
Good post. US markets have been driven by hope and greed using cheap money as traction - especially post-Trump election. The recent unprecedented correction of 40% brought out withdrawal symptoms, satisfied by the FED. It is temporary relief. In essence the FED and indirectly through its agents, in panic, have attempted to re-inflate a popped balloon using sticky tape. Ever tried doing this? I have. It works but it doesn't hold air for long.
Has anybody - other than myself - noticed that unemployment figures, failed deal with crippled China, mounting ridiculous levels of debt - and an untreated COVID-19 pandemic - all seem not to matter? Pre-40% crash loads of people were saying 'crash coming'. Nobody believed them because they couldn't say 'when'. Well now we're into a similar scenario with the rebound. Some have become heady. They 'know' that US and other stock indices are going to the moon. Such over-confidence springs from arrogance and recklessness which has haunted the markets pre-COVID.
What this means is that COVID, has more lessons in store for everybody!
czkn
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As expected the retest of 2974, target 1 has been reached. Wait for close below 2974 before taking next leg down.
Albee1998
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Where would you place a SL roughly I've been in since 3015 and have a sell stop at 3000 also
czkn
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@Albee1998, congrats you would have taken profit already then. I have a tight SL at 3025, reason being it is still a bet against Feds who can cause the price to fuether rise to 3100 range before resistance comes in again. Cheers!