Yesterday was the day I don't wanna trade. Because I still maintain a bearish outlook beyond the short term, at the same time, the market gave an inside-day pattern on the daily chart, and 8&21 EMA caught up, which making everything look so bullish. Therefore, when I meet a situation like this, I don't wanna be part of this trade, I don't wanna bet long or short.
And, the market looks like it has already made his decision, short term top, confirmed.
Of course, the media gave a great reason for the dip. "Stocks slumped on Thursday as another hotter-than-expected inflation report added fuel to concerns that the Federal Reserve will need to maintain its hawkish stance longer than previous expected. At the same time, the latest read on the job market pointed to continued strength on the labor front."
However, from the tech side of analysis, I think we already get the right answer.
For today, both 15 mins and 1 hr looks quite extended, therefore, if the market opens low, it will likely bounce back to the 8&21 EMAs area (4110ish) and then keep dropping.
4060ish level will likely get retest and some tech bullish buyers will likely take a shot at this area. Therefore, 4120-4060 is the room for major play today.
Please feel free to express your ideas and thoughts in the comment section.
