Stock Market Analysis Report 7-11-18...S & P 500...What Out For The Bull Trap At 2830
A little less than two weeks ago, I posted and stated
Since reaching all-time highs in January, price has attempted twice to take out the daily supply at 2830 in March and mid-June, but both attempts were unsuccessful. Fundamentally, the commencement of trade wars and more anticipated interest rate hikes are going to make it even more difficult for price to get through the daily supply zone and challenge the all-time highs again.
In less than two weeks, price has rallied 100 points and nearly touched the nearly level yesterday. This is the fourth time price has been there since January. Everyone on Wall Street thinks this level will be taken out. I don't disagree with Wall Street because after four times at this level, I think most of the unfilled orders have been filled. Pattern traders would agree as well since price has formed an ascending triangle.
In trading you need an edge. Everyone is paying attention to the 2800 level, but nobody is paying attention to the level right above 2800. I see Sellers at the 2830 which is setting up for a great bull trap.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Absolutely agree! Most talking that earnings will be the catalyst but that is priced in given tax cuts but there may be pressure on sales growth. Also saw that an inflation measure keeps come up as reported this morning (PPI). However, I have been wrong for the past year...
Lets see what Smart Money does as we approach the level, things should get interesting, otherwise, expect the Markets to continue to be choppy.