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Another V Bottom 1/11/21

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Ugh. Here we go again. Is this the beginning of the Rigor Mortis Rally I warned about?

That V bottom on the hourly of the ES S&P futures ended up forming a reverse head and shoulders pattern that was completed in the wee hours this morning. The measured move implication is 4770. The 5 day cycle projection so far looks to be a range of 4730-50.

The market is currently in a meltup channel. The bottom of the channel is at 4685 as of 6 AM in New York. It rises to 4700 as of the NY open.  At the same time, it faces resistance from there all the way up to 4726. A shallow pullback from that area would portend another upthrust late in the day.

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Meanwhile, bears are a long way from gaining control. For starters, they’d need to break the meltup channel. Then they would need to take out a key support level. Hourly oscillators are still very bullish, so I don’t want to speculate on that until there’s an inkling of a turn.

Meanwhile, the big picture.

No Mercy

Don’t Be Surprised, or Fooled, By a Rigor Mortis Rally

Breakout Under Way!

When Boring Isn’t Bullish – Gold

Wheels Are Moving in Slow Motion for the Top

 

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