No one expects 2300 and when it gets there no one will expect a drop below 2000.....no one even expected a drop to 2850 last week before thenshakeout ....while the markets were cruising higher big banks were lifting year end price targets on a week to week basis....now all I'm hearing is that the bottom is in and the resume higher is now. present... hilarious... hilarious...a decade worth of straight upward momentum, a dow up over 300+%, stocks up thousands of percent and now a miniscule dip and everyone is crying like little bitches asking if the bottom is in.......
If it breaches 2300 then I'd be weary for a serious unwind. The market has gone way outside above the long term bull channel. Market has dropped back into the channel, and 2300 is the bottom of the channel. 2300 is worth an attempt at long to BTFD IMO, the same way 200 DMA at 2535 was worth a long this past week. But if it breaches 2300, like it breached 200 DMA today, then its possible for more downside for both cases. (?) I don't think people are done unwinding though. The action this past week seems like the "new low tax rate of 2018 selling of winners" and there might be more to go? That said, I think many are telling clients to buy here at or near the 200 DMA, so it might resume the parabolic move up.
This is a real wake up call. This market is not normal. Anything can happen. It can keep going down and never BTFD when everyone expects it to.
It did break through the 200-day on an intraday basis the first time...then rallied hard after a retest. Technically, the higher time frames are paramount. And the highest volume has been on up days this week.
Are you paying closer attention to the S&p 200 dma rather than the Dow? Will probably find out this week what happens. we are at a point now where I believe if people are catching an intraday bottom they are selling the rips higher......
2700 is key resistance above. But IMO the long term top has not happened yet. Tops end on fading, not increasing, momentum.