Neckline Retouch in T-8 Days. Patience is Key!

2023年5月24日

Traders,

I know. It's hard. I have been preaching this neckline retest for almost 2 months now. And this sideways action is soooooo boring. But here we are. With less than 8 days before the U.S. resolves the debt ceiling issue, the market is now finally starting to take note. We must remain patient here as some of the bulls begin to let go of their bags. Once we see this occurring, indicated by the neckline retest on the chart, we can then begin to swoop in and grab those bags at a discount. This is how it's done. Yeah, it takes a little courage. When everyone else is selling, it is often hard to buy. But we've set our mark and have waited for 2 months for this neckline retest to occur. Finally, it is here. We must stay disciplined and stick to our original plan.

So now, about this chart:

- You will observe I have added a new green area below us. Reason? I had spotted a trendline which started in Aug. '22. Some traders may be observing this TL as the neckline for the C&H pattern. As such, we can expect support to begin at the top of the triangle. Support then will increase as we near the 25,200 level (my neckline). This is the area we begin to DCA in (grab those bags).

- The middle of the circle marks June 1. This is the deadline set to have the debt ceiling issues work out. As we near this date with no resolution, fear will increase and weak traders will begin to let go.

My projection then is that we will finally retest the expected touch of my neckline on or before June 1.

I have no idea whether the debt ceiling charades will be worked out or not by then. The clowns who run our country may have other intentions. I am simply reading the charts as I see them from a technical perspective and they seem to indicate that some sort of acceptable resolution will be achieved by then.

Happy Trading All!
Stew