S&P500 up 0.07 point on Friday after gapped down in the morning and rallied to the top at the end of the day. Market still holding the critical support 1090. I still believe the market will break 1115, 1131 and 1145 in the near future although these three resistances are very tough to break.
You will ask me why I didn't long this market if I know it's going to rise. Answer is very simple, I missed the golden opportunity to long this market when it retracted down to 1057 two weeks ago. It's hard to long this market without that profit cushion. In addition, the rally we are seeing right now is the dawn of the phase II bear market. This bear will wake up again once the dawn is over.
In the mean time, market will make a decision to break 1120 resistance or 1090 support, I believe market will go up and retest the recent high 1120, if it break 1120, it may break 1131 as well if the momentum is supportive.
I want to place a short order at 1131 but I don't like the risk reward ratio, therefore I will place my short order at 1145 which I think market will end its third wave (or you can say fifth wave rally depend on how you interpret).
No comments:
Post a Comment