Last time, I saw some very apocalyptic tweets about how the market was going to crash today. I didn’t feel this way. My response to the NVDA news wasn’t exaltation but RELIEF. So long as the sucker didn’t gap up 20 points, I was a happy guy.
Yet, I saw the at Wednesday’s close, the market was pretty oversold, and a bounce was in order, and a bounce on the /NQ was precisely what we got and EXACTLY where I hoped it would go.
Broadly speaking, not just on the /NQ but everywhere, support can finally morphed into resistance. The /ES below is a prime example. The trendline back to last October was teased mercilessly as the price played jump-rope with the line. Finally, yesterday, prices pushed firmly enough lower to stop the fiddling about the neatly finish the transformation. The fact that we’ve pushed back toward the vicinity of this line makes all the sense in the world.
Ideally, what comes in the next few dozen trading hours would look like this.
Finally, in case the source of my post’s title is lost on you, I have kindly provided the necessary reference material, which is analogous to this moment in the market.
