Market is overexciting

Morning folks,

Not occasionally we have called to sit on the hands on Thursday... so, now we have confirmation of bearish scenario's destruction as market follows to common tendency in euphoria of US stimulus pack negotiations. Markets want to be happy, erasing any common sense, and treating negative news (that no stimulus are provided now) as positive news. So, we do not intend to prevent this.

In current new environment market should proceed higher, but not immediately. On daily chart price stands at resistance and we expect first to get moderate pullback, somewhere to 11-11.1K area. Thus, both levels are suitable to consider long entry, but initial stops anyway should be below the 2nd one - K-support area. The point is, that on daily we have "222" Sell, and its minimal target, at least theoretically is 3/8 retracement, which is 11K.

Once the technical response on resistance will be over - we expect upside continuation to 11.8K area. Acceleration to butterfly's first target was strong and it suggests continuation after technical reaction on the first target.
Although it is possible to consider scalp short out from current resistance - we do not call to do this as market sentiment is irrational, recent push was strong and any bearish position cares excess risk. That's why we currently look only for buy trades. But it is not forbidden, or course...