π SPX has had its advance cut off; an attempt to cap it from the reckless advance allows the possibility of a panic blow which is decisive and impulsive in such situations, namely the invasion towards the pivot.
This idea illustrates the stratagem of a major high against a 'positive' news flow.
Since the Vol expansion is necessary for the defence of the highs, an exchange at 21/22 is the way we defend. You should memorise this move of forcing our opponent to make up their mind, after clearing the positivity newsflow around vaccine and etc we are going to have 'diversion' introduced. This should be considered playing against, contested elections and uncomfortable positioning from stimulus expectations leaves the entire board looking vulnerable.
Thanks as usual for keeping the feedback coming π or π
If you believe the chart that you have drawn then you should short everything that you can. Let me know how it turns out for you.
Phoenixgm
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we had blowoff top with vaccine news.. volume is so thin its running on fumes I don't see any more news, events that could keep this monseter up. but as we know, in this market more lockdowns, defults, bankruptcy are all bullish so who knows maybe wee rally past 4000 ...
yupyupyup
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@Phoenixgm, Negative rates and Janet Yellen calling for direct Fed intervention by way of direct stock purchases.
Phoenixgm
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@yupyupyup, I doubt they will put negative rates, and this talk is from 2016. and it sounds more like last means resort not an active policy. I would actullay say they are preping for stock market crash not to popel it over 4000.