Yesterday intensified the graceful exit thesis. The market got to 1607.63 and rolled over. Doing so kept more traders locked in to post-Fed longs. The pressure is building.
A volume lid is forming at 1702.75-1703.75. I still think 1688 gets tested, and was surprised that it wasn't achieved yesterday morning when the market had the chance. Ultimately it may work down to fill the gap at 1671.71 which is also in the 61.8% retracement area (1666.94).
If the market can push through the volume lid, higher levels are still easy targets. These levels remain 1710-1722. And there is still nothing that suggests the market can't continue to new highs. It just feels tremendously unsure of itself at the moment.
My sense is that the market is preparing for an End Of Quarter mark up. The question is whether portfolio managers will seek to lock in gains before the quarter, or will chase the market to goose returns.
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