The market broke lower a few times last week-only to recover quickly intraday. The resistance line is easy to draw. The support line, could be drawn a couple different ways.
February is not a strong month for the market. Given the current weakness, that may be the case again this year. Although, the market did not really follow its seasonal tendencies last fall. Volume is elevated and the market done a good job absorbing the selling. Will the bulls or bears have a stronger resolve?
Capitalized NHNL and the rolling 52-week high is weakening. The Monthly NHNL is already negative.
With Bitcoin, Gold and Silver all dropping, it seems like the market is more likely to pull back. It is a good time to be cautious and wait to see what happens. I seem to think the 6850 area will be where the battle for supremacy will be decided. IF the market drops below 6800, we will likely be going lower.
The day trading strategy continues to work well and I am now working on scale. I seem to think that it will work at a higher scale. We will see!
