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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (52967)	6/8/2020 9:04:56 PM
From: Johnny Canuck	1 Recommendation Recommended By bull_dozer Read Replies (1) \| Respond to of 67710

No one expected this recovery this soon. But given the artificial nature of the rally, driven by Fed liquidity, anything can happen so keep tight stop losses. Most traders are whole now if they held on and this almost never happens. Usually stocks move from weaker hands to stronger hands and those that missed out drive it to new highs in their fervor to get on the train. Surprised at the strength in the SP500 given the slow, low momentum start to the current buy signal. SP500 cleared a key resistance level and confirmed the move today. Potential run at previous high from March. Keep in mind the market was struggling in March when it hit the high so don't look for it to go through on the first try if it does at all. Given the currently rally look for a profit taking sell off if and when it hits that level. If there is a move to sell off there are a number of support levels below so it should be shallow. Same comment on DOW as Sp500. DOW transports has strong resistance at the previous high and two resistance levels to get through to get there. It is constructive that it is following the move in the DOW. Not pointing to a new high in the DOW anytime soon. DOW utilities about to encounter a strong resistance level capping the current advance. Again hard to see why it is not at a new high given the historically low interest rates. Current technical indicate a new high would be difficult right now. On the plus side the divergence between utilities and the long bond has narrowed. COMPQ confirming the new high. It need to stay about the previous high to indicate a healthy market. A drop below would have traders moving to the sidelines to see what happens next. Russell 2000 still needs to get through some strong resistance level. A lot of traders bought near the previous high. It will be interesting to see if they take profits as they get even or hold on for the new high. On the plus side this index indicates a decent appetite for risk. Financials about to bang up against some significant resistance levels. Energy needs to clear one minor and one major resistance level on run to previous high. Gold banging at the lower part of a wide sideways channel. So far neutral. A break would change all that to a negative bias.