The Long Investor

$SPY TOP 20

Added 2023-11-04 20:04:09 +0000 UTC

This is the exact same chart that was uploaded last weekend. Showing that $409 needed to be defended and the bulls needed to step on or the entire impulse wave breaks down and becomes invalid.

So there was no margin of error, from Monday the bulls needed to step in......and boy did they step in! The market climbed every day and gained 6% for the week. The best performing week of the year.

They needed to step in and they did.

Price went back above the 200 day, the 50 Day MA and finished the week at the yellow trend line which has been in place since October '22.

This run has been fast and aggressive and has been a great start to the new month.

But we know that price action does not move in a straight line upwards or downwards and there is no exception here.

The RSI on the 1hr chart reached 90 on Friday, extremely overbought. But we can see on the daily chart that it is at 58, which tells us that there will be a short term pull back but overall, there is a lot more room for this to keep moving upwards after the short pull back.

So I expect a pull back next week, and I have added in the white Fib levels to show us where we can expect this to come back too.

Is anyone surprised to see the 200 Day MA at the 0.5 Fib at $422?.....neither am I.

This is the level I will be watching for support as it is a confluence level.

I will be adding all Top 20 Charts this weekend so we can see where good entry points may be if support is held when the market pulls back.

Again, well done to everyone who stuck with this, last Friday was as tight as I have seen the market from breaking down, I suspect there was a lot of nervous people last weekend and rightly so to be fair.