Well we finally pulled back to our primary trendline here...
it's crazy how Fridays pullback target aligned almost perfectly with 3930 fib support, trendline support and 200sma...
And before You OCD chartist get on my case about my October trendline connection where I use the bodies instead of that 3490 wick, I always prefer more touches for accuracy 😉.
Bullish scenario - Monday kicks off with Durable goods and home sales,. The reason I'm starting this scenario with economic data is because the momentum needs to switch. Sure you can have a technical bounce , but we'll need a Catalyst to Maintain momentum.
Resistance overhead at 3980, with 50sma ,100ema and fib resistance there. Tough 🧱!!
If we can break over 3980 , I love the move up to 4020 to close that gap. From 4020 , you can see 4030. 4030 will also be tough not only because of the fib resistance but because of the megaphone price action..
To see what I mean by megaphone price action , go to your 1hour time frame, start at candle from 2/21 14:30 or 2:30,now draw straight across; Do you see it?.. watch out for that area, if we close around 4030 and there's economic news that comes out Premarket the next day watch for a pullback or possible gap down.
Over 4030 and we are headed to 4090 or trendline resistance.
Bearish scenario- Only if we lose 3930 if we close below 3930, it's close curtains, Vaya con dios. The immediate target would be 3850, but I think that would be a rest stop before eventually heading back to 3764.
The vix is coiled inside a pennant right now amd as long as it's holds above 20.80 , the vix remains bullish.
it's crazy how Fridays pullback target aligned almost perfectly with 3930 fib support, trendline support and 200sma...
And before You OCD chartist get on my case about my October trendline connection where I use the bodies instead of that 3490 wick, I always prefer more touches for accuracy 😉.
Bullish scenario - Monday kicks off with Durable goods and home sales,. The reason I'm starting this scenario with economic data is because the momentum needs to switch. Sure you can have a technical bounce , but we'll need a Catalyst to Maintain momentum.
Resistance overhead at 3980, with 50sma ,100ema and fib resistance there. Tough 🧱!!
If we can break over 3980 , I love the move up to 4020 to close that gap. From 4020 , you can see 4030. 4030 will also be tough not only because of the fib resistance but because of the megaphone price action..
To see what I mean by megaphone price action , go to your 1hour time frame, start at candle from 2/21 14:30 or 2:30,now draw straight across; Do you see it?.. watch out for that area, if we close around 4030 and there's economic news that comes out Premarket the next day watch for a pullback or possible gap down.
Over 4030 and we are headed to 4090 or trendline resistance.
Bearish scenario- Only if we lose 3930 if we close below 3930, it's close curtains, Vaya con dios. The immediate target would be 3850, but I think that would be a rest stop before eventually heading back to 3764.
The vix is coiled inside a pennant right now amd as long as it's holds above 20.80 , the vix remains bullish.
