When you are a trader like I was for many years, you pray for setups like this. This is about as close to a no brainer that you will find. Of course, there are no sure things but this is pretty darn close.
Why?
First you have a classic technical bear market rally comprised of 3 powerful up days into an established downtrend that remains in spite of the rally.
It’s right at about 50% retracement from last weeks down move and just look at the resistance area it is at right now. Technically, I would call this a pretty solid sell area, wouldn’t you?
Now with all that, let’s look at the fundamentals. Inflation is still out of control regardless of what the CPI number is tomorrow. Oil prices are down because Biden to kiss the asses (or worse) of out arch enemies and release oil from our emergency reserves. In other word, it’s only temporary.
Inflation other than oil is still out of control and the Fed know it. They are still as hawkish as they have been since this mess started. They are going to keep raising rates!
This rally the last few days is just a move from support to resistance and it’s done!
I will tell you this first. I do not trade anymore. I simple trade the way I describe in this Substack account CLICK HERE.
But if I did, I would be selling like a banshee!