The market wants to pullback, now that a lot of shorts have covered and stuck bagholders let go of some unwanted inventory. The most likely scenario is for the market to be weak for the next several days, get down to 1150, and then have one final rally to a lower high, perhaps to 1215-1220, and then collapse down to 1100.
But I don't have a lot of confidence in that scenario because we don't have enough bulls on board to really break down hard. That may change in the coming weeks depending on the news flow. Overall, I am leaning bearish as the charts are broken and fundamentals are deteriorating. Only thing going for the bulls is that a lot of traders are thinking like I am.
Expectations are low for nonfarm payrolls, but the overnight trade leading up to it is not encouraging for the long side. Quite a mixed bag.
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4 comments:
Well I'm back on. Yes thats 7 days without power or water. No tv no internet access. I missed out on a major rally. Should have had a sell order in but never thought I'd be w/o power for a full week. There goes my $3,000 profit.
Maybe you can sue Mother Nature.
Thanks Sandman.
Kick em while there down, excellent.
We are heading to 1000 and then 850 over course of 3-6 months. There will be huge squeezes between though. Markets are always inefficient and overshoot
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