DJI - Closing Price Reversal - weakness in rebound
DJI
As predicted, market failed to sustain its upward momentum in yesterday's session as profit-taking dampened any bullish mood. TA - Closing Price Reversal - opened higher and broke previous session's high but ended closing lower than previous day signals a weak sentiment going into today's session. Expect a lower open today and wild intra-day volatility as we approach long Easter weekend.
Comment:
Market buoyed by Fauci's news that Covid infections might start plateauing next week. Having said that, I will still short any false positives going into the long weekend if the price struggles to breach the 23,000 psychological level.
Comment:
Market defied technical indicators and traded higher with false optimism. Will look to sell near 24,000, the 50% retracement level that will be strong immediate resistance while keeping an eye on any news from Covid that might throw technical forecasts out again.
Comment:
Under normal circumstances, the USD2 trillion spend announced by the Fed would rally the market but this time investors are lukewarm reflecting underlying skepticism that recent rebound is exaggerated.
Failure to break the 24,000 psychological barrier is another indicator of weak rally going into the long Easter holidays. Unless there is more flurry of good news to feed the bull, my view of a long term bear market remains intact despite the recent rebound.
Failure to break the 24,000 psychological barrier is another indicator of weak rally going into the long Easter holidays. Unless there is more flurry of good news to feed the bull, my view of a long term bear market remains intact despite the recent rebound.
Comment:
Expect a volatile week with corporate earnings announcement to drive the market sentiment. Investors are trying to grab any positive earnings surprises to justify any long positions but any hint of disappointing news will trigger a sharp downward correction.
I still think the market has yet to fully priced in the reality of a recession hitting the global economy. Thousands are still dying every day and until the Covid is under control and we have found a vaccine, the shadow of the outbreak will continue to haunt any potential economic rebound.
I still think the market has yet to fully priced in the reality of a recession hitting the global economy. Thousands are still dying every day and until the Covid is under control and we have found a vaccine, the shadow of the outbreak will continue to haunt any potential economic rebound.