#UMA 4.248 SHORT #UMA
4.248 SHORT
1. Small bar approach
2. Consolidation along the level with compression
3. Weaker than the market
4. There's emptiness below
Themarket
INJ 33.2160 SHORT#INJ
Mirror level
33.2160 SHORT
1. Small bar approach
2. Near retest
3. After a false breakout is not rollback
4. Weaker than the market
SPY after overheatingDid anyone try to track this thing with a parabolic model? If yes, drop me a PM or comment.
First of all, what can I say about the markets? They are going up and look like they will continue to go up, but there is a but…
As January began and companies started getting their cash back from whatever hell holes they had hidden them , the US Dollar dropped, and the stocks went higher due to increase of value in their spendable accounts and due to the fact that the market value is valued in USD. (I went into a slight offtopic there in regards to a theory that most forget the basics of measuring value and the fact that it isn’t just SPY… it is SPY/USD!)
So the bottom line is - The markets overoptimistically overheated the market in January and it resulted in what the “experts” have called a “dive” “plummet” or for Christ’s sake “crash”. (Although it was just below three percent, seems like the finance media is running low on income and have begun to click bait. Might look at their stocks)
In fact we see a retracement, which was long ago cried for by many, as the market needed to drop off some steam and feed the skinny bears, which haven’t had even a 3% daily drop since July 2016.
Before I delve into the technical stuff I want to mention that the drop was not caused as many call for bad earnings, but because of chasing cars.
What I mean is that there was a large buying volume increase the week before and the SP got overheated on Friday. (Personally I saw a jump of more than one percent during a day as a benchmark.) This week the market well… got overbought and finally retraced back.
Now the issue is to forecast, where this retracement might stop and the surge resume.
