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They’re Ba-a-a-a-a-ck! 10/1/20

This is a syndicated repost courtesy of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Reposted with permission.

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.

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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

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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.

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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.

Technical Trader subscribers, click here to download the report.

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Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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