Market Analysis and Trades for 3/31
That'll Do Pig. That'll Do.
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The subtitle of the plan for Friday was “You’ve Lived a Good Life Bull.”
I mentioned above the paywall the bearish cross of the 21ema below the 200 sma and Friday’s action didn’t fail to disappoint. After Thursday’s brief pause of the active trend (we got a doji candle) Friday saw a gap down and go that never really looked back. We’ve talked about the major 5726-5733.5 spot for weeks. I added 36/37 after Thursday’s action as a potential warning sign that a liquidation was looming. We had thoroughly traded through 26-33.5 overnight (yellow), woke up trapped below 36/37 (white), opened below 26 (blue), and put in high of the cash session (red) at 5731.25. From there the liquidation was on. From Thursday night’s plan:
Liquidations such as this (and particularly after the bleed out after hours) can often retrace somewhat easily. However, bulls have a long way to go before sellers are in any meaningful trouble. I believe it would be far better to see a final capitulation puke into a “good low” as opposed to grinding higher first.
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