Today's 6% move down was not coincidence, it was setup as a bear trap to fuel the rest of the capital needed to reach all time highs. I am not a bull and I have been wanting us to test the March lows just as much as any other bear, but I'm also not blind to what the market is setting up. This is just my opinion and you should trade based on your own judgement.
Look at the chart and see how perfectly today's price landed on the lifeline trend line at the bottom of the channel. The bulls ran out of room at the top of the channel, and had to move it all the way down to setup for the remaining move to all time highs.
The perma-bears have started to capitulate because this correction rally seems fake and over extended (which it is) but bulls must keep bears interested. So today the bears got what they needed to stay in the game (hope of more carnage and corrections all the way down to March lows) and bulls got what they needed, space to make their final move to all time highs (rockets have been re-fueled and ready for take-off).
Note: I believe the only thing to knock the market out of the channel is actual news (i.e. 2nd lock-down, civil unrest, election, war, etc.) and absent of that, the market will continue to all time highs. After that, I believe then we will retest March lows.
Look at the chart and see how perfectly today's price landed on the lifeline trend line at the bottom of the channel. The bulls ran out of room at the top of the channel, and had to move it all the way down to setup for the remaining move to all time highs.
The perma-bears have started to capitulate because this correction rally seems fake and over extended (which it is) but bulls must keep bears interested. So today the bears got what they needed to stay in the game (hope of more carnage and corrections all the way down to March lows) and bulls got what they needed, space to make their final move to all time highs (rockets have been re-fueled and ready for take-off).
Note: I believe the only thing to knock the market out of the channel is actual news (i.e. 2nd lock-down, civil unrest, election, war, etc.) and absent of that, the market will continue to all time highs. After that, I believe then we will retest March lows.
Note
s3.amazonaws.com/tradingview/snapshots/n/nqHYWtp4.pngUpdated the chart a bit to make it more readable. My original idea still holds.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.