Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Pivotal Session In Stocks Bull Bear Battle

Stock-Markets / Stock Market 2021 Feb 22, 2021 - 01:10 PM GMT

By: Ricky_Wen

Stock-Markets

Wednesday’s session was more of the same as it was another expected consolidation. If you recall, it was only day #2 of the pattern so patience Is needed given the past 2 weeks’ V-shape performance totaling +8% from the 3650s low to the 3950s high on the Emini S&P 500 (ES).

Today should be an pivotal session given that both sides are trying to win the battle here. Bulls are trying to stabilize a temporary low so the train can finalize a route towards new all time highs again. Bears are trying to break below last week’s low and below the trending daily 20EMA to cause a derailment.


The underlying context remains the same, with the main takeaway being that this 1-3 days consolidation must keep holding above last week’s low 3878 in order to confirm that short-term momentum is not weakening too much. Price action is just trying to find the next higher lows setup on the daily/weekly basis in order to ramp again given the context of the bull train. However, if support starts going, then it’s going to brake check everyone on the train and that’s when the carnage could begin. For now, focus on dip opportunities vs our key trending support levels.

What’s next?

Wednesday closed at 3927 which is basically where Tuesday closed at as well. Price action indicates consolidation/digestion as there is no breakout back above 3950 yet to confirm that bulls are ready to ramp higher. For now, the price action is following our 4hr red line projection from yesterday. Adapt.

Some key summary points:

On Monday, price action hit a temporary high of 3959.25 as it got rejected vs the multi-month uptrend channel in order to consolidate/digest a bit first before reattempting higher highs.
Today is day #3 of the consolidation/digestion pattern; see if price action can do something more decisive like our 4hr red line price projection from yesterday. Need to see a turnaround to start confirming things.
Watching to see whether we can accumulate on this dip opportunity once it stabilizes for another ride towards the 3976 target, then 4000 major psychology number. Remain patient.
The must-hold support for this week is located at 3878, which was last week’s low. Meaning dips are still being treated as buyable opportunities when above this support. FYI, daily 20EMA = 3860s for reference and still keep grinding higher to play catch up (daily closing print matters).

See charts on Emini S&P 500 that accompany this article.

Ricky Wen is an analyst at ElliottWaveTrader.net, where he hosts the ES Trade Alerts premium subscription service.

© 2021 Copyright Ricky Wen - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in