S&P500 and Nasdaq 100: Tech Stocks Rally as AMD Lifts US Indices
On the downside, the series of higher bottoms has created a series of ascending pivot support at 7259.06, 7225.93 and 7195.28. These levels will rise as the market moves higher.
Minor bottom support is 7174.12, 7107.86 and 7046.55.
It makes no sense to try to pick a top even if your overbought indicators are screaming. I think traders tracking these types of indicators are actually feeding the bull because, after all, they need a seller to take new positions.
A top will eventually form, but I think you’d be better off selling or shorting its confirmation rather than trying to pick it. If you are inclined to probe this ranging bull market, looking for weakness and a top, then I think you’d be better off waiting for a closing price reversal top. In the meantime, we’re likely to remain in both a buy the dip and buy the strength market until the pattern breaks. Until then continue to watch the pivots for support. Any breaks in the pattern or through swing bottoms will weaken the bullish picture.