From the title of this post, you might have guessed, I am looking for some weakness going forward..Some kind of pullback only because we have run up too much too fast and we have also kind of reverted to the mean after all the recent market mayhem. Some pullback is possible..And will also be good for the market.
After this pullback, can we rally again? Definitely. We need to see the nature of the pullback first ofcourse. I believe the market will build an important low and base in the market over the next few months. Dont be surprised if we do not go anywhere in next few months. We can go down some, then go up some and then one final low around 2100-2000 area which should give up a multimonth rally...I am still long but I have some hedges in place and will also look at building some very short term shorts in Futures today. Longs are in cash stocks.
Some charts for your study below.
Comments welcome and urged...Confusing times. Trade Safe.
Best.
2 comments:
Hi..Lee,
There is a resistance in 3100-3250 area. Hourly is overbought but not yet turned down. Daily is in upmode but will be overbought in a day or two.
This big bounce need to be corrected if its a "B" wave up. It will test its lows or more below if its a 4th wave going on. In either case a significant downside is there.The clue to when that will start is in the next two days price action.
I prefer a test of 3200 in the next two days and a corrective move down. However, market can start the same from 3080, 3140 also.
Good Luck to you.
Yes Ilango...Same thoughts I have also...I am also following your blog daily...nice updates from your side too...
Best.
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