Tax Cut Approved. Now, Here’s How To Watch Out For Buy The Rumor, Sell The Fact

Welcome back everyone!  We only have a little time on the clock today.  Let’s take a look at a couple key things we need to understand about this market.

We are still seeing accumulation at key support levels on an intraday basis.  My speed lines continue to be major support here.  Until we break down below those on the different Stock Indices we are primarily being guarded on the shorts.  It is much more challenging to do shorts above the speed lines.

We are noticing key accumulation here.  There is this big wide bar to the down side.  Take notice to all the volume.  The next bar had quite a bit of volume.  IT was well over two thirds plus of that other volume.  We should’ve see this thing be down.  It came back up, and that is a sign of accumulation.  We have one of the big IRBs here.  This is a big sign that somebody is still accumulating at these key levels.  This was near daily and monthly pivot points.  It was also near the daily speed lines.  I pointed this out as this was happening in the Live Trading Room this morning.  That ended up hitting fallen resistance levels.  That led to us running into some pressure.

That brings us to the key point of where we are at.  This is very reminiscent of the tax bill that has now passed the House and Senate.  This is very much like Cryptocurrencies.  The markets are going up, then they became publicly available, then they ended up being wild with drops.  That is a buy the rumor, sell the fact type situation.  The cat is out of the bag!  We are starting to see more details about the tax plan.  Will we suffer the same fate?

I am going to be watching the speed lines.  Please note some of the key areas in the upcoming days.  That is the 2680 area on the S&P, the 1536 level on the RUSSELL, the 24700 area on the DOW, and around the 6475 on the NASDAQ.  The DAX has done a nice job of pulling back into the channel.  I want to see if it can pierce the 13000 level.  That could lead us to a quick drop to 12900 or better.

There are some great opportunities to the short side.  All that it needs is a little nudge over the edge on the Stock Indices.  That is what I am going to watching because of all the excitement.  Will this become the buy the rumor, sell the facts?  That is why I will be watching the key levels so closely heading into the upcoming days.

I hope you guys have a great night and I will see you in the upcoming videos.

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