To The Moon

Approaching key resistance

The markets $DJIA(.DJI)$ , $NASDAQ(.IXIC)$ and $S&P 500(.SPX)$ piled on more gains Friday to the already impressive ones the day before. Such was the effect a few numbers had on the market! But that also goes to show how oversold the market was as well as how depressed valuations were. It was much like a tight spring that was released.

However, lets not get carried away and stay grounded. As much as we should not be so mired in emotions and be overly pessimistic at bottoms, we should also be mindful when markets shoots up too fast. It is a good thing of course especially on volume, off key levels and with correct technical structure. But markets do not go up in a straight line. And to be honest, we are approaching the critical 4100 on the broad market index. The bears will be defendingthose levels with full force and that is where the real battle is. Take those levels, defend it and hold it, wear out the bears trying to reclaimit and the longer we hold, the higher the chances we are looking at a possible bull win.

This week will be the retails turn to release their report cards. It will be a good insight into consumer's strength as well as how well the retails are holding up in the face of inflation. $NVIDIA Corp(NVDA)$  will also be releasing theirearnings report. I am not expecting much fromthem this year. But I am expecting great things from them further down the road. So any weakness is a good chance to accumulate especially looking at how much they have climbed off their lows last month. It does look like the big boys have already started positioning themselves.

As such, to summarise, I believe the markets will pull back soon so now is not the time to chase. The next pull back will be critical. If important support levels hold nicely on divergence, that will be the spot to load up before a possible exhilarating rally upwards. As usual, price action leads. Therefore, its hard to tell now. So be cautious first especially at these levels.

Thanks for reading my humble commentary.

Stay safe 😊