A victory for the bulls!
The market popped after Thursday's CPI report. It has BO of 3925 resistance, and heading to the next levels: 4080 and 4135
As showed on the chart, the bearish trend line has been effective from the beginning of this year. As the market approaching it,
1) As a bull, the overall momentum is on our side. However, there are LOTS of uncertainty ahead. Buy the dips would be a more profitable strategy then buy the BO. And the bulls are expecting a 2nd leg up to 4133. (1st leg was from Oct 13-28, lasted 2 weeks)
2) As a bear, I view this BO as a HH top, for the follow through of the big BO bar (Thursday) is not that good. People are hesitating to buy higher, especially at 4000 whole number. A lot of long covering at Thursday and Friday's close show the lack of confidence of the bull.
Overall, next week resistance: 4080, 4140. Support: 3920, 3870, 3800.
As showed on the chart, the bearish trend line has been effective from the beginning of this year. As the market approaching it,
1) As a bull, the overall momentum is on our side. However, there are LOTS of uncertainty ahead. Buy the dips would be a more profitable strategy then buy the BO. And the bulls are expecting a 2nd leg up to 4133. (1st leg was from Oct 13-28, lasted 2 weeks)
2) As a bear, I view this BO as a HH top, for the follow through of the big BO bar (Thursday) is not that good. People are hesitating to buy higher, especially at 4000 whole number. A lot of long covering at Thursday and Friday's close show the lack of confidence of the bull.
Overall, next week resistance: 4080, 4140. Support: 3920, 3870, 3800.
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