...or gives it room to wander!I haven't posted since last Tuesday as I was tending to a personal loss in the family. They say that with great loss comes great gain. My gain it realizing what is important to me and what brings me joy in my darkest hour. In the end family and friends are paramount and will always be. Although this blog will probably not be the legacy I leave when I check out of this world it does bring me joy posting my thought and analysis of the markets. Having said that let us look at what the markets have done in my absence of talking about it.
In my last post I spoke about the 1687 area highlighting the large amount of volume that was transacted there thus far. Below is the 30 min SPX PnF chart again highlighting that area. This was a distribution area back in August and a supply area the large players avoided back on September 16 by gaping price above this level to keep sellers at bay eventually running the market to new highs. Below is an excerpt from my September 17 post which I believe sums up the road-map I laid out.
Here is some food for thought, what if you were one of the many bag holders that bought in the 1684-92 area that just saw their investment recover from a nasty loss now turning a profit? How do you feel? What if that market continues higher to challenge or even break to new highs roping others to initiate new long positions or add to their existing positions in the process? How hopefully are you now? Then the unthinkable happens, prices come back to your break-even price. What do you do? Think about it.
Clearly I spoke to Ms Cleo ahead of writing that post!
Thanks for reading.