Monday, gap down outside of wedge and they bought it up via the same way it gapped down , Bank earnings. Gave me 2020 vibe when all dips were bought up.. if you throw your 200sma on the 5min you'll see it never broke it on the gap down which was a red flag as far as a short entry; Same with QQQ.
This entire squeeze has been the Xmas rally I was expecting the first week of January (See link)..
Now I think we are near the end of this rally and the possibility of a 5% pullback on the horizon.
Like I said in my last post , the top benefactors of these squeezes are MEME stocks and Crypto; I would like to see a bearish reversal there.
So let's dive into this price action
Red lines - Main wedge
Blue lines - minor wedge
White line - trendline support.
Gapped down and bounced off white trendline support, Then preceded to rally right outside of main wedge all day and actually formed a minor wedge.
If minor wedge support breaks Tuesday morning, our target would be white trendline support at 394.50 - 395. We could either bounce there again and rally to 399.38 gap close or break support and head to 390.
15min chart divergence on rsi since the 9th.
We closed right at reversal point.
We are still overbought but Bulls have control of this above 390.. So if you short , becareful swinging this above that area!.
This entire squeeze has been the Xmas rally I was expecting the first week of January (See link)..
Now I think we are near the end of this rally and the possibility of a 5% pullback on the horizon.
Like I said in my last post , the top benefactors of these squeezes are MEME stocks and Crypto; I would like to see a bearish reversal there.
So let's dive into this price action
Red lines - Main wedge
Blue lines - minor wedge
White line - trendline support.
Gapped down and bounced off white trendline support, Then preceded to rally right outside of main wedge all day and actually formed a minor wedge.
If minor wedge support breaks Tuesday morning, our target would be white trendline support at 394.50 - 395. We could either bounce there again and rally to 399.38 gap close or break support and head to 390.
15min chart divergence on rsi since the 9th.
We closed right at reversal point.
We are still overbought but Bulls have control of this above 390.. So if you short , becareful swinging this above that area!.
