Page menu

Friday, October 14, 2022

Is this just the beginning of the Face Melting Rally, we've been waiting for...?

 I'm short on sleep today, and have a lot of charting to get caught on, after the opening bell, so I have to try to keep this short. 

As I stated in Wednesdays update:

 "Bottoming is a process", which can't be rushed.    

I'm sure most my readers would like to believe that yesterday's rally was just the beginning of a more sustainable rally, but when I see the DOW, the S&P, and the NASDAQ, driven above , otherwise meaningless, round number targets  - (#DOW30k, 3700, 11k) - and this, trading into yet another short squeeze Friday, I have my doubts. 

There are other things I didn't like about yesterday's rally, including the fact that the most beaten down sectors didn't lead.... energy did. 

Nevertheless, after yesterday mornings little shakeout - on a negative $VIX, I might add - the $SPX is trading back above key support (3588.11).

This morning

Looks like we're poised to to fill the gap on the $SPX that was left behind last week 

Next real resistance looks like 3812ish

In Hindsight: 

1. "Only trust the $VIX...", not the red banners your seeing on the TV. 

 2. Recognize your breakout points 

I have a lot more to touch on, but I'm out of time, after getting bogged down in the creation of a new landing page for the weekly news letter. Be sure to sign up

You can review my play by play, in yesterday's twitter timeline, for more insight.  

Take Care, AA


No comments:

Post a Comment