There’s The Morning Pullback We Warned You About Last Night. A Coil And Breakout Is Coming.

Welcome back everyone! Let’s do an update video about last night’s video. You can check that video out by clicking here. We told you that we were looking for pull backs today. We had massive overbought sign in a brief down trend. We aren’t really in much of a downtrend overall. However, we are in a situation where the last several days have been down. I told you two days ago that I was looking for the plunge protection team to kick in here. That was because of all the accumulation on all the different charts. We sure enough bounced off the 200 day rising moving averages on three of the four U.S. Market’s charts.

I told you in last night’s video that we were too far overdone. We ended up reaching the target. Those targets were the channels. There was a lot of resistance at the channel on the NASDAQ. The channel on the DOW was also hit too. With two of those hitting the targets, that meant we were more likely to see a pull back this morning. I told you that in last night’s video. That ended up happening.

That really is just tightening the noose. Until the channels are broke above, there isn’t really any hope for a mega rebound. Keep watching the levels in these charts here. That is the 75 level on the NASDAQ, the 26200 area on the DOW, the 1670 level on the RUSSELL, and the 2875 are on the S&P. Until we are above those there isn’t much hope for a major rebound.

If you are looking for the big sell off, we want to get back down below the 200 period moving averages and accumulation bars. Those are inventory retracement bars. They were trying to defend the 200 day moving average. That is a barometer for funds. If we can get below those we could see major drops. Right now there is a massive fight between the bulls and bears. The bulls are trying to take the support levels and make the market hold up. The bears are using popups to sell back down.

This is a coiled spring of support and resistance to me. We are looking for break out/break downs from there before we get serious. We have earnings and elections seasons coming up. There is plenty to help us navigate those waters. In the meantime, I am taking day trades between the support and resistance areas. I fired off several trades in my Live Trading Room this morning doing just that.

Keep those levels I reaffirmed with you in mind. Everything that I have said in the last couple videos has come true. This is just validating what is going on right now. We need to be poised for breakouts. We also need to be prepared for shorter volatility trades as well.

I look forward to seeing everyone in tomorrow’s Live Trading Room and tomorrow night’s videos!

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