S&P buyers dominate market; sellers wait aside
Updated
Last week began with a powerful rally. After the bulls failed to push higher the next day, sellers seized the initiative and tried to drive the market lower. However, they didn't accomplish much, and the week ended with a potential reversal pattern on the hourly chart. If this pattern confirms today, we could see another bull run very early. Even if it doesn’t confirm, there is still substantial support just below.
On the longer timeframes (weekly and monthly), buyers still have full control, with no warning signs. While the price is slightly overbought on the daily chart, this is not a significant concern in strong uptrends. Sector rotation appears healthy – despite the market being pressured by weakness in XLK, other sectors (e.g., XLF, XLV) appreciated.
Important economic data will be released on Thursday and Friday. As long as there are no negative surprises, the market is expected to remain strong.
The market outlook is a definite "long". New buyers can try to establish position upon the confirmation of the hourly reversal patters and upon the pullback into consolidation zone (if it happens).
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
On the longer timeframes (weekly and monthly), buyers still have full control, with no warning signs. While the price is slightly overbought on the daily chart, this is not a significant concern in strong uptrends. Sector rotation appears healthy – despite the market being pressured by weakness in XLK, other sectors (e.g., XLF, XLV) appreciated.
Important economic data will be released on Thursday and Friday. As long as there are no negative surprises, the market is expected to remain strong.
The market outlook is a definite "long". New buyers can try to establish position upon the confirmation of the hourly reversal patters and upon the pullback into consolidation zone (if it happens).
Disclaimer
I don't give trading or investing advice, just sharing my thoughts.
Note
The hourly reversal pattern was confirmed. The price rallied but encountered resistance above Friday's high. Although buyers attempted to push the price higher, they lacked support from large players. Sensing this weakness, sellers capitalized and drove the price down.Two things are important:
1. Some Selling pressure above Friday's high
2. Closing below Friday's low.
Today's price action can be considered as the first warning sign for buyers. We'll likely see some short-term downside auction. Still, it is important to remember that we're in a strong uptrend and sellers would need to do much more to reverse it.
For now, daily higher low is the most likely scenario
Note
Like this setup. 1. Bearish "look below and failed"
2. Kind of hourly double bottom
Note
Buyers confirmed hourly higher low but they didn't have enough conviction to capitalize on it. Maybe they will get some inspiration from tomorrow's GDP report.Note
Price has set daily higher low but it is still moving within Monday's range. Moreover, there is downtrend on the hourly. Not a good position for entrance in any direction
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