Stocks Finally Dip!!

Apr 20, 2021

Stocks retraced to exactly the level we predicted yesterday: 4144. We have been warning that they were starting to get overbought, so hopefully no one got caught in a fomo trade. Although we do seem to be getting a fair amount of support at this level, the rally in stocks has left several vacuum zones below so the downside risk is significant. The more aggressive may consider entering a long position at current levels, however if this level does not hold, we have a vacuum zone down to 4073. Even if we retraced to this level, stocks would be long term bullish. The Kovach OBV is still pretty strong, confirming the trend.