The Market Bulls Had Hope And It Paid Off. So What Next?

Okay, welcome back everybody! Well, another wild and crazy ride on Wall Street this week. We certainly told you last week that it would be this week. Let’s go ahead and talk about where we’re at now in the big picture. We we talked a lot in the most recent videos here about the Bulls losing hope and exactly what we need to do to hold onto that hope and we reminded you in the last videos that this this bar right over here was very reminiscent of this bar here and we said that that whole area is gonna be one big area of a concrete to the downside just like it was over here and you can see what ended up happening you know right back over here. So, here we are this time we push right back up we are just shy of that DOW 27000 level despite all the madness the market definitely climbing a wall of worry in these markets, so, as we go into next week we’re going to see can we actually break DOW 27,000 that would be very bullish the bulls have held on to hope here and that’s so far that hope is paid off. So, a lot of accumulation underneath of us here and so right now the Dow 27,000, that’s the big milestone, which were just a few hundred points away from that. That could happen Monday morning right out of the gate for instance, so, looking to see if we can get back about DOW 27,000 then remember the real milestone would be DOW through 27300 27,400 that resistance band up there is gonna be the real thing that people want to beat but if that happens, wow! It’s hard to imagine that with impeachment and wars and everything else going up that’s what markets tell them to climb the wall worried. So, with that being said we’re gonna keep a real close eye on follow-through going into next week can we get above and stay above as long as were above DOW 27,000 as I’ve said before I’m gonna go ahead and really be focusing heavily on long side trades below 27,000 I’m gonna go ahead and be looking at both sides of the fence and that continues to go ahead and be the strategy. So, as we look into the daily charts here you can see the danced is that close in here on Friday above the channel we’re at just above the channel the Dow still weaker on the the Russell but we at least push back into the channel for Russell.

The real challenge here is to get up above all this gobbledygook right up here just a boatload of resistance levels all there and so getting above 1535 is gonna be important for the Russell. That would really help signal much more meaningful opportunities to the Russell because really the market is whole because we really want to see Russell get back on board here that’s super critical and then on the S&P; we close right at the channel, so, I want to see a little more love out of the Russell or the Dow and the SP and a lot more love out of the Russell here for the Bulls to breathe an extra sigh of relief. Another thing we include you in on in previous videos here was watching my Goldman Sachs, Goldman Sachs was that rising support it was holding on for dear life here on a daily basis so this was kind of an important deal here with Goldman Sachs and the reason being if you’ll recall that we were hauling long term rising support underneath of us and also we were at target two with accumulation as well. So, this was the natural area this market had to hold and get back up and get back up fast because if they actually broke down below this 195 things could get real ugly real fast. So, just like everything else where the bulls are looking for queues we want to go ahead and see Goldman Sachs start to pierce up here through this 20750 area that’s gonna help them a little bit more as well because often so goes Goldman Sachs so goes to market vice-versa so I’d like to see Goldman Sachs do a little bit better here as well as get back into that channel.

Let’s see if we can get back above the channel that would just be one more indication that getting bumped down 27000 getting the Russell back above the top end of its band there at the 1535 area. A lot of those different things that are going to help people want to pile on at that point. So, not completely out of the woods yet and certainly have still not broken that magic Dow 27,000 level I’ve been talking to you about since last year and that is still very much an issue at this time. But, for now, the accumulation bars have one just like they did over here that led us back up towards 27,000 beyond. Well, this accumulation bar held and has put us right back up here in the spitting distance of Dow 27,000 so it could be a lot of excitement to be looking forward to. Keep in mind those levels where we want to be looking for focusing primarily longs or again below 27,000 we’re really looking to play both sides of the fence primarily focusing on long side trades though has really been the key winner here. The shorts look like things are going to heck in a hand basket then they swoop it up and that takes a bite out of the short so the long side selective longs have really been the focus, okay? So we’ll share more of those with you and other stocks to be looking at in upcoming videos. Have a great weekend everybody. I look forward to seeing you in upcoming videos and the live trading room on Monday morning. Take care everyone. bye bye!

Leave a comment!
Read previous post:
The market bulls are losing hope. Here’s what they’re watching now!

Okay, welcome back, everybody. Let's go ahead and take a look at the markets first things first, the update I...

Close