Unless the BIDEN TAX comes into reality or has a good chance of doing so, or there is an unscheduled unpredictable unknown geopolitical event, there is no stopping SPX 4400 in May 2021.
Busy day in NQ daytrading but relatively quiet otherwise; small profit, rather narrow ES range, but NQ was far more bullish. Needed that weekend rest after a wild week.
And, the calendar this week is pack, big tech earnings....
- Many news followers got caught looking the wrong way due to the announcement of the investment tax hike on Thursday.
- Following news will often get you whipsawed.
- Markets are driven by emotion and not logic, so one needs a way to track how emotion drives our market.
So, I will make this easy for you this coming week. Our smaller degree support is in the 4160/70SPX region. As long as that holds on Monday, I am looking for the market to rally up towards the 4240/50SPX region before we see another pullback to set us up for the next major rally to 4300+. But, if we do not hold 4160 as support early in the week, then we will likely re-test the 4095-4120SPX region before we begin the next rally to 4300+.
In other words, 4095-4120SPX is the new upper support for the market, and our targets remain 4300+ as we move into the month of May. In fact, 4095 may become our new support floor for the rest of 2021 depending upon the action seen in the coming 3 weeks.