To The Moon

Hitting air pocket en route to 4100

After three days of solid gains, the markets $DJIA(.DJI)$, $NASDAQ(.IXIC)$and $S&P 500(.SPX)$made the first real wobble helped along by Snap's results which was rather underwhelming to say the least.

And the markets being already anxious as it is needed no further encouragement for investors and traders to lock in what ever profits they had in anticipation of increasing resistance at the 4100-4300 levels for the SPX.

Short term, the technicals do look tight as macroeconomics are still in favour of the bears so no real catalyst to give a solid push for the bulls but there might still be room for a bit more push to the 4100-4300 levels which is probably the bears' gameplan to lure more bulls to the fore in the classic bull trap of a bear market rally.

How the bulls react at the levels mentioned as well as in the resulting pullback might determine near term market direction. As mentioned before, many are waiting patiently for a safer cue to enter as capital preservation is key in these environments. Once sentiment shifts andthe bulls start stampeding, we might see the onset of a new bull cycle and such stampedes normally happen very fast so stay cautious butat the same time nimble.

Stay safe 😊