At the end of this article, we added a discussion on setting stops and where to get access to market internal data.
On Thursday evening 9/19/19, we wrote in our analysis:
Market internals are all sending out the same message. And the message consists of 2 parts:
And that is pretty much what happened during the day on Friday 9/20. TQQQ dropped down to 62.74 as the intraday low. And if you consult the S/R table from that same post, it says Support1 for TQQQ is at 62.75. So once again, the messages from market internals came true.
But why did this happen?
In order for stocks to continue marching up, there has to be fresh waves of buyers. These waves of buyers typically will jump in when one of these 2 things happen:
Since Surge7 has started on 9/4, prices have not dropped enough yet to entice more buyers to jump it. Without the V reversal, stocks have to prove that they have found support at some strong level before more buyers will actively buy again.
Successfully testing Support1/Support2 is what buyers want to see. And that is the condition we need to monitor for.
The rest of this article covers:
Table of support and resistance levels
Updates from market internals
Planning your trades
Setting protective stops
Accessing market internal data
Register your email here for full access to all our nightly analysis, trading plans and intraday updates.
No credit card.