Don't forget the line in the sand
Just wanted to share some thoughts on the Stock Market going into this week.
Market makers dealt out a good amount of pain last week to trigger some fear in the stock market. Remember that this stuff rarely goes straight down. Market makers can trap more people if they give them a little relief and something to get excited about first. Remember after a significant move down, we always get a bounce. This is often called sucker's rally when everyone jumps back in only to get dumped on.
Just remember that even the most sinister of market makers always respect the hidden language of Technical Analysis, so the line in the sand level on SPY of $3925 can be used as a guide to see what happens next.
No matter how bullish people get on a bounce this week, remember that until a daily candle closes above $3925, it literally means nothing. I would expect maximum fuckery this week with a good few pumps to try and trap people with FOMO. It's possible that we can bounce hard off the 55EMA here and rally to new highs, but very important to be cautious. All eyes are on that $3925 level. Bulls need to prove they're back in business.
Keep an eye on the SPY daily chart and until price action closes a daily candle above $3925 we know that a trend change to a downtrend is most likely, dragging all assets down from Dogecoin to Silver. Nothing will be immune from the move. I've drawn a blue line on the chart below to show the important level.
As ever, I'm not a financial advisor, not an expert on this stuff. Do your own research and let me know what you think.
nice one mate...learning every day 🙂