The market god is playing with us again. It was stopped right around its current 50 DMA yesterday at 2739 and let everyone guess what's the next. In the normal situation, I'd think it will back off from here to let the bearish H&S play out. But as I said, this market is anything but normal. It is especially true in front of the coming Job Report due out in just less than half an hour as I'm writing. Here is what I'm second guessing for fun.
If the Job Report is deemed negative (in the sense whether it is good or bad for the market, therefore can be good news is bad news), then obviously the market will tank to follow my pre-defined roadmap. If the Job Report is deemed positive, then an initial response will be good and the market will shoot up. Technically it can go as high as up to 2775 for S&P but still within the range of a dead cat bounce for this round. I think this gap high may likely a fake breakup as last time and will likely fade and reverse either within today or early next week. Unless it has its strength to break out through the resistance of 2775 for starting a new floor, I will keep my faith for a sideway market with a high chance of low testing before this correction is finally over.
No comments:
Post a Comment