We’ve been looking for that psychology round number of 14,000 to be tested on the equity futures. Earlier we conducted a live stream on YouTube; however, when you visit it you’ll noticed the mic was not activated during the session – but you will be able to interpret the sentiment of what we were trying to identify. We also review Tesla as it’s been on our charting annotations since pre-market April 4th.
We continue to contemplate whether those March lows will be retested by the markets, as you will recall this being mentioned on several videos – including to manage your trading plan and risks accordingly. Major Indexes remain in bearish correction territory; therefore, any bullish impulses need to be carefully executed if you’re taking a contrarian trade against the grain of the trends.
Markets are adjusting and rebalancing while the money flow continues to rotate from high beta growth stocks (interest sensitive) to value oriented stocks with low beta like your grocery stores, health care, etc.
Nothing wrong with sitting on your hands from the sidelines in the meantime. Trade smart; keep it small.