Like upsidetrader, I do not like V-shaped bottoms - it shows a lot of emotions on the part of traders and investors. We have had virtually NO time to digest and consolidate in this market for the last 2 months. February was straight down, and March is almost straight up. I would have much rather seen some sideways action along the way, followed by a breakout (or breakdown). But it is what it is, and we must act and plan accordingly.
We are overbought on many levels and a pause in the action is certainly to be expected. However, a lot of folks are feeling antsy about missing this move. I am expecting a bit of a pullback here to last week's lows around 75.50-76.50 on the SPY which would be a 38% Fib retracement and might be an important support level. A breach of that level then we might be testing the lows again.
As usual, the market leads and we dance! We must be prepared to adapt and move as the market unfolds each day.
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