US Stocks approaching key resistance

by twilliamsb

I know stonks obviously only go up. However, this is only true until they don’t.

I’m sure most of you are loaded up to the eyeballs in call’s right now and picking the colour of your Lambo to buy next week.

I just wanted to offer some cautionary technical analysis.

The S&P is approaching 3120. This major resistance line. It has acted as resistance 5 times before and only ever broken to the upside once.

(For some reason images are not currently allowed, so here is a link).

www.tradingview.com/chart/SPX500USD/aJefVNhC-S-P-Approaching-key-resistance-at-3120/

The Nasdaq is also going to have to push through its all-time high and the phycological 10,000 barriers if tech is to head higher from here.

I could well be completely wrong, but I think this is where profit taking will begin. A lot of people will get off the train and you don’t want to be last off. The S&P has risen 40% from its low and 6% in the last 3 weeks without any pullback. a small correction is overdue as it is, but with another news catalyst, this could be a perfect place for a change in momentum.

I suspect this will only be a small pullback initially of 3% to6% or so to around 3,030 / 2,930 before the unrelenting buyers pile back in and we come back to retest 3120. However, I think it’s on the second test we fail and drop 10% or so to retest 2750, pulling the rug under a lot of retail investors (complete fucking autists). from there who knows, this will depend on the murder hornets/super volcano /hurricane/riots/bankruptcy/unemployment/elections/bankruptcies/Jpow printer jam and COVID.

Obviously, I’m a big bear but just wanted to share a warning. this time I think the market will mean it.

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.