The current sell off really means little -bulls still in control

Jul 12

The big sell yesterday caught a lot of people by surprise, but it really was an incredibly obvious resistance level we slammed into.

During the rally it was simple to plan for resistance hitting somewhere 5630 with an overshoot. We first stalled at 5630, then spiked in the news move - and then slammed.



Now - that might have been a blow off top and it might just be a dip.

Now, the resistance was the 1.61 extension of the 2022 drop. I spoke about that in this post;

We spiked it out by 20 points. If this is a legit top, it would make more sense for us to head fake and really run the stops. Or the bear move will be easy - as they famously are ...

So this move is totally fair game even in a bear setup.


And if we just hold the 76 retracement, it can be marked in as a standard technical correction.



Breaking lower would impress me, but this bear move so far does not impress me.

Shorted high into it, covered recently and am long the 76 supports.

Jul 12

Note

Supports held. Now bears need to do something at resistance or this was just a dip.