Telegram Trading

Key Algorithm Calculated Support Levels: 4040 (SMALL) / 4000 (SMALL) / 3980 (MEDIUM) / 3917 (LARGE) / 3900 (LARGE)

Key Algorithm Calculated Resistance Levels: 4100 (LARGE) / 4075 (MEDIUM)

Assessment: Seems the bulls ran out of steam yesterday. They attempted to make a run, but it seemed the buyers were all in the market. Eventually the market achieves a situation where everyone is fully invested. When there is no longer any cash to invest, the market can’t keep going up. The market needs buyers to push prices up. Eventually when the cash is all invested, the only thing that can happen is for the market to sell-off. Then the sell-off frees up cash that gets invested again and up we go. It is the cycle of life in the market. Yesterday had the feeling of some exhaustion to the bullish side. My belief has been next week when traders return that the selling will occur. It could start a little earlier too. Let’s see what we get today. A down day would be initial confirmation that the near term top is in. Good luck in your trades!