Historical: Days leading up to the Jan 4th pullback we saw a decrease in trading range, volume, and bullish sentiment. This is not surprising as we sluggishly pushed into consecutive all time highs. Support found at 8 EMA over 21 and 50% pitchfork retracement. Resistance found at 1.272 fib extension. Sell signal fired on Demark in confluence with MACD cross and 8/21 day EMA cross. Our target was Miracle Monday highs. Since then we have been trading inside days within a range.
Today: We are trading within October 9th highs and lower band 50% pitchfork retracement. If we retain below Oct 9th highs horizontal S&R we have scope to retest the 50% lower band pitchfork support at 3693 in confluence with yesterdays IBRH which if that fails we can expect another Miracle Monday test. Given the current political landscape of a democratic Senate, equities historically have taken a hit. If we can hold above Oct 9th highs we can objectively shift out focus to the 3720 snowline LVN confluence
Today: We are trading within October 9th highs and lower band 50% pitchfork retracement. If we retain below Oct 9th highs horizontal S&R we have scope to retest the 50% lower band pitchfork support at 3693 in confluence with yesterdays IBRH which if that fails we can expect another Miracle Monday test. Given the current political landscape of a democratic Senate, equities historically have taken a hit. If we can hold above Oct 9th highs we can objectively shift out focus to the 3720 snowline LVN confluence
- Old resistance turns support at the 100% fib retracement with a new resistance found at the 1.272 fib level.
- Consolidation around the 50% pitchfork
Conclusion: continued support found above the 50% pitchfork band puts an initial target of 1.272 retracement in scope. Rising wedge forming in premarket price action as we start to find support on the cloud model. Looking for upward trend continuation along the Jan 4th ITL in confluence with the .618 pitchfork and .618 fib retracement zone.
Failure to hold above the 50% pitchfork shifts out focus to 3740 where we saw a near-term pullback on the back of protest news at the Capital. If we set a create a new low from here, we can expect the 3740 - 3710 to be revisited as there is excess waiting to trade based on yesterdays opening drive bull rally.