I started this blog yesterday, so I had to update the title to 38k, from 37k, after yesterday's pump n dump.
CNBC even reported on yesterday's rally in Bitcoin, but they left out the fact that it looked like a blow-off top, followed by a swift $2000 point decline.
#Bitcoin was featured on CNBC Fast Money tonight. That's the kiss of death pic.twitter.com/DLs3dmSOo0
— Veteran Market Timer (@3Xtraders) November 10, 2023
Speaking of CNBC
CNBC likes to report bear market rallies as "winning streaks" as if any investor counts the days...
I guess it's just their way of trying to put a positive spin on a bear market.
As I see it: The $SPX only managed to hold the 50 day moving average for 4 days, and technology - as usual - was leading... That was until yesterday afternoon!
$SPX gives back all the gains of the past 4 days. So much for that "winning streak" $VIX spikes on Powell's comments, and a cyber attack on some Chinese banks. https://t.co/qydKWNRt7x
— Veteran Market Timer (@3Xtraders) November 9, 2023
Getting back to tech leading...
Microsoft actually closed at new recent highs on Wed., and since the powers that be like to pump the high fliers - or the magnificent 7 as they like to call them - to new highs - in order to force bearish capitulation - before they take profits.... - $MSFT is the name to watch.
It's hard to predict if we're going to see a pullback before or after Thanksgiving, since that's just around the corner, but after yesterday's reversal, a short term pullback is looking more likely.
Stocks may struggle until Thanksgiving as bond yields bounce. And one sector in particular is a turkey.
The levels to watch today are the 50 day moving averages.
$SPX continues to trade into a downturned triangle pattern. This image was saved before yesterday's midday reversal.
Bitcoin Bounces back to 37k
#Bitcoin bounces back to the 37k level #Bitcrash likely pic.twitter.com/9LGxB7iIkJ
— Veteran Market Timer (@3Xtraders) November 10, 2023
There's nothing historic about that target, since Bitcoin used to trade near 70,000, but this reminds me of when the Dow traded to 37k, in early 2022.
Dow Jones 37k
In hindsight the Dow 37k target looks like a zigzag pattern, in a head fake wave "B", and the selling continued until we saw wave E, of A complete.
And that bearish leading diagonal triangle set the course for the remainder of the bear market, in 2022.
Today we continue to see a lot of sideways consolidation, and that will likely continue into 2024.
I'm out of time.
Take Care, AA
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