A giant P.S. to my most recent post…
This pullback needs real bulls to step up.
As of today’s close, the S&P is sitting at approximately…
The Lower Bollinger Band on Daily Timeframe;
The March, 2021 highs;
The 50% retracement from June 13th lows; AND
Today and yesterday we saw dramatic reversals at extreme fear levels (see today’s newsletter)
Given the extreme reversal in fear, and positive money flows into stocks in the last 2.5 months, this is a very, very, high probability dip to purchase.
That’s because price being at Bollinger, Fib, and prior resistance, means there is a “confluence” among traders… who all act on respective signals and clues from the market. The fear index VIX confirmed the price action.
Confluential trade set ups are very high probability trade set ups. The bias is for the upside. Or in other words, if today wasn’t the bottom of this pullback, it’s highly likely it’s not far away (for now).
If bulls fail at such a pivotaly level (given the alignment of signals), then you can expect new lows.