Yesterday we wrote:
Yes, Surge10 is starting. But Resistance1 looms immediately and it’s pretty strong. $SPX $NDX $RUT will have to prove that they have the bullish strength to rise above it.
This morning $SPX $NDX $RUT proved that they had plenty of bullish strength to surpass the previous Resistance1 by a large amount. Of course it does not hurt that stocks were helped along by a certain tweet designed to spike the market and deflect the glare of impeachment.
Whether or not we can believe that “it’s a real deal” is besides the point. Algos trading on headlines eat up stuff like this. And you knew since yesterday that under the hood, market was turning bullish. $VIX $VXN were forming a top, indicating that Surge10 is starting. So we had all the elements in place for a very bullish morning.
Tonight, after hours futures gapped up at open and stayed up. So the odds are high that we will see a gap up at open tomorrow Friday morning. The questions now are: (1) are we setting up for a dip in Surge10? (2) If so, how big?
We will explain the answers to these questions below.
The full article covers:
Support & Resistance Levels
Market Internal Indicators
Planning Your Trades
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