I know everyone is looking at the minute by minute right now with all the uncertainty in the markets. Despite the past narrative, we seem to be correlated with the current movement of the DJI and S&P. I decided to pull back and look at the daily to see whats going on.
Since that big red candle on March 12, we have formed a perfect bear pennant and we are currently bumping our heads against the VPVR resistance around 5370. We are still below all the MA's on the higher time frames, although I do acknowledge that we are starting to move above them (MAs) on the lower time frame. If we can get over the 6.4K mark we should be able to get back on track. However, all the signs are pointing to a retest back down to the 3.8K levels. Based on the last touch down there, we say a lot of buying pressure at those levels. We could see a significant bounce that will bring us through these levels and back up into the 8k level. This could take weeks or even months. But I believe we will have to go down again to go back up. With all the world events, there seems to be to much selling pressure at the 6K level.
Good news? We have turned up on the Stochi, the RSI (although below 40) and the MACD is trying to print bullish.
For now, this is a no-trade zone, unless you are swing trading the 5 minute charts because day by day, volatility is the name of the game .. this looks to be heading down to me though. More chance to grab more.
What are your thoughts? Chime in and don't forget to hit that like button and follow along.
-NCCM
Since that big red candle on March 12, we have formed a perfect bear pennant and we are currently bumping our heads against the VPVR resistance around 5370. We are still below all the MA's on the higher time frames, although I do acknowledge that we are starting to move above them (MAs) on the lower time frame. If we can get over the 6.4K mark we should be able to get back on track. However, all the signs are pointing to a retest back down to the 3.8K levels. Based on the last touch down there, we say a lot of buying pressure at those levels. We could see a significant bounce that will bring us through these levels and back up into the 8k level. This could take weeks or even months. But I believe we will have to go down again to go back up. With all the world events, there seems to be to much selling pressure at the 6K level.
Good news? We have turned up on the Stochi, the RSI (although below 40) and the MACD is trying to print bullish.
For now, this is a no-trade zone, unless you are swing trading the 5 minute charts because day by day, volatility is the name of the game .. this looks to be heading down to me though. More chance to grab more.
What are your thoughts? Chime in and don't forget to hit that like button and follow along.
-NCCM
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.