You know, I usually don't follow the DOW as much. I mean, I'll glance at it every day but I think the surge we've seen can't go unnoticed. The question is: Is this surge over? I mean, this thing blew right through the 50, through a resistance level and now it's looking like it wants to go touch the 200 day! Hey, if it does....it does. Two possible outcomes here that I think could happen. Bears will step back in but the Bull's will absorb it and either base or head higher. If the Bull's can't absorbs the Bear's stepping in, we can erase this euphoric move in days. Or, a move similar to what we saw from about the middles of August to the end of September. In the coming days we should know better.
I believe the markets understand that sentiment is Bearish and if this rally we've had is in fact the C wave of this ABC correction, then we should start to expect downside movement. Worse case, we could see some gaps down to 3700ish then 3500ish. These tech earnings are not painting a nice picture. I'm sure everyone has been watching META's plunge overnight. But again, the markets are going to do what they do. I'm still Bearish and plenty to worry about. Always remember to trade the markets in front of you, be patience, stay disciplined. Happy Trading Everyone!
I believe the markets understand that sentiment is Bearish and if this rally we've had is in fact the C wave of this ABC correction, then we should start to expect downside movement. Worse case, we could see some gaps down to 3700ish then 3500ish. These tech earnings are not painting a nice picture. I'm sure everyone has been watching META's plunge overnight. But again, the markets are going to do what they do. I'm still Bearish and plenty to worry about. Always remember to trade the markets in front of you, be patience, stay disciplined. Happy Trading Everyone!