Do Or Die!
The good news first – if you have bullish inclinations that is. Equities clearly have managed to hold medium support zones as outlined yesterday. We now have the opportunity to play a bounce assuming it materializes. Thus far I am still having doubts as the momentum today leaves much to be desired. Make no mistake – it’s do or die time here and if the bulls miss this opportunity then there will be a significant price to pay.
Here’s are daily and the weekly panels – on the former we touched the 100-day SMA and then pulled back – on the latter the weekly NLSL at 1765.5 also offered support. That doesn’t mean the bulls are out of the woods just yet – not by a long shot. As a matter of fact we could even paint a bounce here and then reverse below the 25-day SMA. So there are plenty of ways how this puppy could still resolve further to the downside. But let’s take it one trade at a time – what’s important today is whether we do have a good shot down here – and I’m happy to say that yes we do.
Some of you are already long since the breach above the 25-hour this morning. That was a speculative entry with a wide stop and I’m now advancing my stop below the SMA (i.e. 1780). If you’re in cash right now then the best way to play this without directional bias is to simply follow the inside day that we seem to be painting today. However, that’s not how we steel rats are going to roll – I have a much better idea – please step into my lair:
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