🖼 Daily Technical Picture 📈
➤ A dull Tuesday for equities. There was nothing in the price action of importance. All eyes on Wednesday inflation day.
➤ Yesterday, a reader made the same comment about the low volume Easter Monday trade. I pretty much agree with that statement. Individually, each trading day may in itself have no particular bearing but together with other days there can be meaning.
➤ A very simple example: say today was a bullish day. If the next day is also bullish what do we think about the chances of the following day being bullish too? Statistically, it is slightly better than 50%. A string of bullish days builds momentum and it turns into a trend.
➤ Let's look at this in the context of the current market condition. The S&P500 has been trading sideways in a tight range. What does this mean? It is not in a trend, it is in a short-term consolidation. A break up or down out of the consolidation is the beginning of a trend. Which way will it break? I'm favouring the upside as reflected in my buy position. However, it could also keep moving sideways or down. With the latter two scenarios I would most likely fail on my hunt and realise a loss.
➤ Conclusion: 🐆 Nothing will turn into something.
EQUITY TREND:
⦿ Short-term (weeks) - NEUTRAL
⦿ Medium-term (< 6 months) - UP
⦿ Long-term (>6 months) - DOWN
➤ A dull Tuesday for equities. There was nothing in the price action of importance. All eyes on Wednesday inflation day.
➤ Yesterday, a reader made the same comment about the low volume Easter Monday trade. I pretty much agree with that statement. Individually, each trading day may in itself have no particular bearing but together with other days there can be meaning.
➤ A very simple example: say today was a bullish day. If the next day is also bullish what do we think about the chances of the following day being bullish too? Statistically, it is slightly better than 50%. A string of bullish days builds momentum and it turns into a trend.
➤ Let's look at this in the context of the current market condition. The S&P500 has been trading sideways in a tight range. What does this mean? It is not in a trend, it is in a short-term consolidation. A break up or down out of the consolidation is the beginning of a trend. Which way will it break? I'm favouring the upside as reflected in my buy position. However, it could also keep moving sideways or down. With the latter two scenarios I would most likely fail on my hunt and realise a loss.
➤ Conclusion: 🐆 Nothing will turn into something.
EQUITY TREND:
⦿ Short-term (weeks) - NEUTRAL
⦿ Medium-term (< 6 months) - UP
⦿ Long-term (>6 months) - DOWN
🏆 eToro Popular Investor 💰
✅ Copy My Trades @ eToro, www.etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
✅ Copy My Trades @ eToro, www.etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice