Range or Trend? 21st October 2022
🖼 Daily Technical Picture 📈
➤ Without wanting to sound like a broken record, prices are still treading carefully around the important support/resistance level.
➤ That being said, the Bearish picture is progressively getting clearer. Not enough yet to pull any triggers but very close. Here's why and why not:
➤ S&P500 price once again rejected the opportunity to stay above our key level at 371. Finishing near the daily low and printing a bearish looking candlestick.
➤ We can count the recent peak on 18th Oct as another lower high. The classic definition of a downtrend with lower highs and lower lows remains intact.
➤ VIX continues to contract. Now below 30, out of the panic zone. Contractions usually lead to higher equity prices. Not so in the last few days. This needs a resolution to clear up the overall bearish picture. I am watching this as a determining factor.
➤ I remain long with +20% exposure but will change drastically soon. The maximum portfolio exposure is +/- 200% on capital, the level of highest conviction.
➤ Conclusion: Prices are trending down but also staying within a range. Most signs show bearish continuation. Easy to get whipsawed here.
➤ Without wanting to sound like a broken record, prices are still treading carefully around the important support/resistance level.
➤ That being said, the Bearish picture is progressively getting clearer. Not enough yet to pull any triggers but very close. Here's why and why not:
➤ S&P500 price once again rejected the opportunity to stay above our key level at 371. Finishing near the daily low and printing a bearish looking candlestick.
➤ We can count the recent peak on 18th Oct as another lower high. The classic definition of a downtrend with lower highs and lower lows remains intact.
➤ VIX continues to contract. Now below 30, out of the panic zone. Contractions usually lead to higher equity prices. Not so in the last few days. This needs a resolution to clear up the overall bearish picture. I am watching this as a determining factor.
➤ I remain long with +20% exposure but will change drastically soon. The maximum portfolio exposure is +/- 200% on capital, the level of highest conviction.
➤ Conclusion: Prices are trending down but also staying within a range. Most signs show bearish continuation. Easy to get whipsawed here.
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✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
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Not Investment Advice
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
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