Perspective: A lot of people are talking about the markets being over-bought, frothy and rising on low volume. All of that may well be true, however, the markets can continue to be irrational (and rise) longer than most traders can stay solvent. The longer term trend is unmistakably up ! - one only has to look at the monthly bar below. While we may be due for a correction, it is useless trying to call a market top.
I had been writing about the large weekly balance areas (shown below) for some time now. What we witnessed last week was a breakout from a 13 week balance with the week closing at the highs at 1919. It is not unusual for markets to both come into balance and/or re-test the breakout area - 1900 - after a successful breakout. However, a close below the 1900 area on a weekly basis would be considered negative and signal a breakout failure.
Let's look at the Profiles next. Short term trend is up, Value has been building higher. Both Thursday and Friday's POCs are very prominent and become likely targets if we see short term liquidation. My focus for Monday is the Spike from Friday and developing Value relative to Friday's Value Area. 1914 - which was the base of the Spike from Thursday and Friday's low is your first level of support. Below 1914, the next area of possible support is 1908-09 - last week's POC. The overnight session coming into Monday will provide more information.
I had been writing about the large weekly balance areas (shown below) for some time now. What we witnessed last week was a breakout from a 13 week balance with the week closing at the highs at 1919. It is not unusual for markets to both come into balance and/or re-test the breakout area - 1900 - after a successful breakout. However, a close below the 1900 area on a weekly basis would be considered negative and signal a breakout failure.
Let's look at the Profiles next. Short term trend is up, Value has been building higher. Both Thursday and Friday's POCs are very prominent and become likely targets if we see short term liquidation. My focus for Monday is the Spike from Friday and developing Value relative to Friday's Value Area. 1914 - which was the base of the Spike from Thursday and Friday's low is your first level of support. Below 1914, the next area of possible support is 1908-09 - last week's POC. The overnight session coming into Monday will provide more information.
Atul, Terrific observation on the 1914 spikeas evidenced by action on Monday Jun2.
ReplyDeleteThanks for taking the time to post.
Paul