The chart below shows that social mood (and the stock market) are at a social mood resistance area. This means that optimism (or "animal spirits") is about to hit a top or at least pause. For people that are interested in shorting the market, and have been looking for a time to get in, this would be a good spot. Markets should either pause or turn down here (for those who like to play breakouts, they could short a break below 1760, the low end of the resistance area). If they break above S&P 1780, then they are likely going to keep on going for a bit (closer to the 1800 mark). A sharp turn down in mood would be another helpful signal that it was a good time to go short. We will be watching closely over the next few days for a possible turn down in mood.
Disclaimer: Don't trade if you can't afford to make mistakes. Don't trade with money you need to pay the rent or other bills. Suggestion is based on probability of success based on past performance. There is no guarantee of success this particular time or any specific time in the future.
(click to enlarge)
Disclaimer: Don't trade if you can't afford to make mistakes. Don't trade with money you need to pay the rent or other bills. Suggestion is based on probability of success based on past performance. There is no guarantee of success this particular time or any specific time in the future.
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