To The Moon

Can the rollercoasters turn into planes?

I have been referring to the three major US indices namely the $DJIA(.DJI)$, $NASDAQ(.IXIC)$and $S&P 500(.SPX)$as rollercoasters. Maybe that is not as accurate an analogy as wecould paint the markets to be. Let me explain.

Rollercoasters need tracks and we know where the tracks will lead us. So in a way, sometimes the markets tend to be that way and technical chartists try to 'visualise the tracks'. But rollercoaster tracks are still plain clear for all to see! Not much so the stock markets. 

So I believe a plane might be a better description and its more thrilling! So to better fit the descriptions of the market lets imagine them as plane rides!

At the moment, the three planes are stuck at the ceiling which is the resistance level of eachindice. These were the previous support whichare now the resistance. A boost of energy is required to break this resistance which if sufficient might actually provide momentum to propel the indices onwards to what many will label a bear market rally considering the situation. That will probably bring us to the next ceiling of around 4200-4500 level which is what i call the maximum altitude for these currrent planes. Above that level, the planes need to be upgraded to rockets. But until then, enjoy the plane rides.

Stay safe 😊