S/R Levels July 15th - 19th

Plan ahead your trades and use these levels as triggers to validate mixed setups that this week delivered.

The reason why my latest educational publication was about trading psychology is because it is being tested and this week that just ended may have been just the appetizer of what is coming. If there is any doubt, see the ATH move on Wednesday to be followed by a selloff on Thursday and then new ATH of Friday but followed by a retrace that set a bearish daily candle.

Last week I shared several charts showing how unusual is the current market in terms of the historical inflows to tech and the incredible low breadth (or stock participation) that the market is facing, remember that just 25% of the SP500 stocks are outperforming the index, so in basic arithmetical terms few stocks are pulling the index in proportions that must be significant to bring up the index to the current levels.

And when those stocks sneeze, the market feels that, as this week proved.

A key chart to watch: