We have pulled back to what should be considered a logical zone where buyers support stocks. As you can see on the 30-minute chart of the S&P 500 below, the low-1390s has been solid support for nearly three weeks. Thus, a bounce here would not be surprising. However, the issue for me is how vigorous and lasting the bounce will be, if we even get it.
As I have been discussing, the last few days of the end of this quarter should feature increasingly random price action. Overall, we are still in an uptrend, but the buy-the-dip mentality has become increasingly ubiquitous. Thus, I am in wait-and-see mode at this point. Also note that if we lose the 1390’s, I expect us to see 1380 and the upper-1370’s in short order, as quite a few trapped longs will want out.
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I have one thing to say: “Utilities”! 😉
good thinkin.
Thanks Chess. Any thoughts on GLUU here? It’s pulled back to support on much lighter volume. Or, do you see a need for more basing?
Tom, I appreciate your interest and readership. However, out of respect for 12631 members I will reserve specific back-and-forth for inside the service.
No problem. Understand completely.