Markets took a breather yesterday with the major indexes declining more than 1%.
The market still has an appetite for risk as WallStreetBet’s favorites GME^, AMC^, & TSLA^ outperformed.
Bitcoin is slowly grinding up. This morning it’s trading above $43,000, and its 50-day moving average.
For a reference point, the U.S. lost nearly 7,000 troops in its 20+ year wars in Iraq and Afghanistan.
The conflict is holding energy prices very high but the market is starting to look passed the war and invest in energy solutions. That’s why I doubled down on Tesla when it dipped to $700.
The indexes are all climbing and looking extremely bullish.
But both the Dow and the Russell 2000 are facing resistance. See the charts below.
I drew the red lines when these levels were acting as support. Having former support act as resistance means the market is working properly.
There could be some sideways action but I do expect at least the Dow to reclaim this level in the coming weeks.
Bitcoin’s key resistance level is $45,000. The 200-day moving average sits jump beyond that level too.
Historically the last week of March is weak for the markets.
And historically April is the strongest month of the year.
I’m looking for dip-buying opportunities on the SPY.
^*RAIL has support at $5
^*SGLY has support at $9
RKDA has resistance at $2
IMXI has resistance at $22
EIGR has support at $9
VYGR is on watch
SPTN has support at $33
CRK has support at $11
LXU has support at $22
^GLNG has support at $20
FLR has support at $29
CCJ has support at $28
ALLG is on watch