IXIC (NASDAQ) When will the bears hibernate? Today I am sharing a snippet from my free weekly newsletter I send out each Sunday night (www.thetraderreset.com). I would love to hear what my fellow swing traders think the market may do this coming week.
Here are my thoughts:
Anything is game right now in the market. The pullback from last week paused at a key level as indicated by my yellow lines. If we break that line, we could be in store for another bearish week. I actually feel pretty beat down by the past week, so I don't feel I can make really objective predictions. What I can show you is what key levels I see, and what the weekly is doing for some extra clues. My thoughts below include the Dow's daily/weekly chart as well.
👀 Both daily charts show a failure to hold the rise on Friday. That is the long wick you see above the body of the candle.
👀 The movement on both daily charts is also a typically a bearish structure: a drop down, a rise to retest a certain area (in this case the moving averages) and then a continuation lower.
👀 The inability to pop above and close above the smaller moving averages is also a bearish sign.
👀 If we break below the yellow lines where the price is sitting, this could mean a decline toward the next yellow line (or for the Nasdaq, at least to the 50SMA, which is my pink line).
👀 If we hold at or near the yellow line both indices are currently at, this could mean the decline has halted, but will need a really good pop up to rally and to regain confidence.
👀 The indices are sitting on their 10EMAs (orange lines) and this too can act as support for a rise.
So with that, what do you see to add to this? or what adjustments would you make to my observations?
