Using Volume analysis we can see clearly that the bulges around 183.50 and 184 will probably serve as a magnet before any further correction (for example on the Daily chart where I published a probably down-move soon).
First, the market will probably retrace, almost certainly to the 183.50 level.
If it doesn't, then this is a strong correction, but once it's over it will come back to fill that gap (most likely) even if a new secular bear emerges and no new highs are made.
So: either the market will go back to around 183.50 or higher and if it doesn't exceed 185 will probably go down much lower to Daily Chart correction levels over next 1-3 weeks (170-165)
OR: market keeps going down to 170-65 level and then comes back to round 183.50 level.
Trading idea: wait for a clear buy signal on either 30 min or 5 min timeframe and then enter long. Once enough profits in the bag, can place breakeven stop in case downtrend resumes.
If signal fails, then wait for another buy signal or immediately reverse (failure of good buy setup is bearish obviously), but that's a different approach to this commentary which is calling for a pullback.
Another longer-term approach is to start buying and be prepared to keep buying all the way down to longer term support. That takes time and deeper pockets, but generally: if a market goes strongly in one direction without significant correction and you are caught going the wrong way AND have deep pockets - or are not over-leveraged relative to your account size which is saying the same thing - then you can keep averaging in at more favourable price so that when correction happens, you will quickly make profit on entire position.
First, the market will probably retrace, almost certainly to the 183.50 level.
If it doesn't, then this is a strong correction, but once it's over it will come back to fill that gap (most likely) even if a new secular bear emerges and no new highs are made.
So: either the market will go back to around 183.50 or higher and if it doesn't exceed 185 will probably go down much lower to Daily Chart correction levels over next 1-3 weeks (170-165)
OR: market keeps going down to 170-65 level and then comes back to round 183.50 level.
Trading idea: wait for a clear buy signal on either 30 min or 5 min timeframe and then enter long. Once enough profits in the bag, can place breakeven stop in case downtrend resumes.
If signal fails, then wait for another buy signal or immediately reverse (failure of good buy setup is bearish obviously), but that's a different approach to this commentary which is calling for a pullback.
Another longer-term approach is to start buying and be prepared to keep buying all the way down to longer term support. That takes time and deeper pockets, but generally: if a market goes strongly in one direction without significant correction and you are caught going the wrong way AND have deep pockets - or are not over-leveraged relative to your account size which is saying the same thing - then you can keep averaging in at more favourable price so that when correction happens, you will quickly make profit on entire position.