Market Soars with Unyielding Momentum
Updated
Last week was marked by complete bullish dominance. After positive inflation data was released on Wednesday, the market opened with a significant gap up. The next day, sellers made a sluggish attempt to fill this gap but never came close. To sum it up:
1. Prices are in an uptrend on weekly, monthly, and daily charts.
2. Last week closed strong with almost no seller pressure.
3. There is an unfilled gap from Wednesday, the 12th.
So far, this market is fully controlled by buyers. Notably, growth is driven mostly by tech stocks, reflecting a "risk-on" mode of investing. Some people are concerned about the narrow breadth, but it doesn't matter much whether growth is driven by many names or just a few large stocks. While narrow breadth can lead to increased volatility, the fact is that money is being poured into the market. As long as this continues, the market will remain strong.
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
1. Prices are in an uptrend on weekly, monthly, and daily charts.
2. Last week closed strong with almost no seller pressure.
3. There is an unfilled gap from Wednesday, the 12th.
So far, this market is fully controlled by buyers. Notably, growth is driven mostly by tech stocks, reflecting a "risk-on" mode of investing. Some people are concerned about the narrow breadth, but it doesn't matter much whether growth is driven by many names or just a few large stocks. While narrow breadth can lead to increased volatility, the fact is that money is being poured into the market. As long as this continues, the market will remain strong.
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
Note
Powerful bull run. As expectedNote
Buyers are taking rest. Sellers are busy with something elseNote
Gap up open, lack of support from large buyers to go higher, liquidation of weak longs from Tuesday, day closes within Tuesday's range. Nobody wins. In order to prove something bears must at least set hourly lower high.
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