ES Being Clear As Mud 11/23/2020

ES at the daily view.

The ES is breaking the Hodor Line (orange line) again. I knew it was just a matter of time before that resistance becomes easier to pass through. Currently, liquidity is high enough to go scuba diving in, so major supports will likely prevent any sort of large crash. I counted about 12 supports below the current price - just to get to 3180. So, permabears will be very upset of how hard another March 2020 crash would be.

Seriously, permabears usually ignore the golden details that ruin their shorts. All because the price is high doesn't mean it will automatically fall. You have to consider volatility, liquidity levels, advance/decline, market breadth, currency strength, market sentiment, price action, time, and momentum when determining the market's actual direction and next move. Permabears only see the high price, but ignore everything else. And no, the market is not the real economy. It hasn't been like that for years now and it won't be for a long time.

I'll just be waiting for the dip. I'm not going to bother trying to call a top. That's always a losing battle - especially since the VIX and VVIX are not in spike mode. Where's the resistance? No idea. I do know where the good supports are. Buying the bigger dip is an easier trade than trying to short into an unknown resistance.