Much to many trader's amazement (including myself), the US markets keep charging upwards despite all that has and is currently happening in the world today regarding COVID19. It seems that after the initial bad news which caused major panic, the market is currently accepting the future drop in earnings and fallout that is occuring due to the virus and worldwide lockdown. The FED has also reassured investors that they have their back and has been injecting massive liquidity.
Technically we have been making higher lows an higher highs so there is no sense in trying to call the top even though we at the important 61.8 retracement level of the last big move down. No one knows 100% if we are going to run out of steam here or continue to go make all time highs, as much as the narrative tells us that this market "should" turn here . (The market doesn't care what you think it "should" or "shouldn't do")
So where does that leave us... well follow the chart and have a , "IF this happens THEN that approach". Don't get married to one belief regarding where you expect the market to go to, have a multiple outcome approach based on confirmations made by price alone. Do i think this move will retrace in the near future... YES... am i positioned to short this market ... NO ... When the chart starts pointing down then i will look for shorts, if it keeps trending higher , i will stay on the long side.
Looking at the chart it looks like the last high of 2970 will be the next major resistance then possibly the 100ma/200ma around 3000 zone. If we make a lower high and a lower low ,buyers might then have reached their pinnacle for now. Safe trading!
SPX500USD
Technically we have been making higher lows an higher highs so there is no sense in trying to call the top even though we at the important 61.8 retracement level of the last big move down. No one knows 100% if we are going to run out of steam here or continue to go make all time highs, as much as the narrative tells us that this market "should" turn here . (The market doesn't care what you think it "should" or "shouldn't do")
So where does that leave us... well follow the chart and have a , "IF this happens THEN that approach". Don't get married to one belief regarding where you expect the market to go to, have a multiple outcome approach based on confirmations made by price alone. Do i think this move will retrace in the near future... YES... am i positioned to short this market ... NO ... When the chart starts pointing down then i will look for shorts, if it keeps trending higher , i will stay on the long side.
Looking at the chart it looks like the last high of 2970 will be the next major resistance then possibly the 100ma/200ma around 3000 zone. If we make a lower high and a lower low ,buyers might then have reached their pinnacle for now. Safe trading!
SPX500USD
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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.
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.