However I note some negative divergences. Resistance 3382 and 3390-95.
Sky’s the limit if they clear.
Support at 3365. Bears need to break that, or bulls stay in control.
No 5 day cycle projection yet. 2-3 day cycle projection 3405.
Looks like a BTFD day. I will be looking to load up my inventory on the first tick up off a pullback where support holds, for example 3365 on the ES. .
In the event we do get a support break. I’ll look to short the reaction.
2 Hour Bar perspective
Here at 4:40 AM NY time, bears just landed a punch. Not a knockout though. Just a support test so far. By the way, you can follow my intraday snark at the Stool Pigeons Wire. Register there and join in!
4 hour bars give an interesting view of how formidable resistance is. Multiple layers between here and 3425. If that area is cleared it becomes a base for prices to move much, much higher. But if this rally stalls out here, it could be a multigenerational top.
Either scenario is entirely plausible. As traders we need not worry about it. Take what the market gives. But investors who have their retirement funds in the market need to pay close attention over the next few months. Your fate hangs in the balance.
Oh, it’s so easy to be bullish, but keep in mind that not just the US government, but all governments, not just governments, but also corporations, not just corporations, but especially zombies kept alive by government bailouts, will need to raise cash in the capital markets for years.
The era of shrinking supply is curtains. Curtains I tell ya. It’s not the same game it was pre March 2020. For a clear view of the market’s context, subscribe to Liquidity Trader. Try it risk free for 90 days.
Here’s the weekly outlook from Monday.
An up day on Monday would confirm that the short term downtrend is broken. This report gives you the key support and resistance levels, and what to expect if they’re broken. I’ve added 8 chart picks, 5 longs and 3 shorts, to take advantage of a move either way.
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