Let's party like its 1999!

nomisy

The rallies back on! Let's party like its 1999! Not. Are you buying into this stuff? I hope not. This is likely setting up the contra-trend we told you about yesterday. With the decelerating trendlines on the hourly charts forming bullish falling wedges, we expect that a contra-trend will occur now, or prices will fall to a new low and form a divergence on the hourly charts. Then after a test to support on the daily charts prices will rally to form a lower high, producing a contra trend. However, the Summation Index isn't buying this rally, it didn't even turn up during this rally.
At resistance you will have a host of motivative sellers, three groups come to mind:
1. Those that bought at higher levels that want to break even by selling their long positions.
2. Those that want to add to their short positions.
3. Those that missed the first short signal and want to find a brand new short entry.

AGA7d

I have a doubt on the first 1 - seen similar posts before - MM as liberators for the bagholders.

Obviously there are bag holders when indices broke down last sept/oct. But subsequently there are huge volumes throughout March - seems to me lots of the bag holders may have already cut loss during the time (especially quite some hedge funds liquidated).

Agree with the next two.