NPP Trades Daily Recap 5.27.22
Sorry for the late recap, I was busy last night celebrating the Golden State Warriors victory.
The Quick Recap:
The SPY had a huge rally, closing at the high of day and over the 21ema. We also had two consecutive 80% up vol days after a 90% upside day last week. Good news for those who are looking for signs of a potential bottom. As I type this, we are gapping up due to the inflation numbers coming in as expected. And we are about to hit that 410ish resistance. Given how overbought we are currently, I expect a pullback to relieve those short-term overbought levels. Then we’ll see if we can put in a floor, make a higher low, then head towards the next downtrend line (in blue) which currently sits in the low 420’s. I believe after we hit that level, if we hit that level, the next pullback from there will tell us if a bottom is in or not. If we put in yet another higher low from there then overtake the 420 zone, then the odds a bottom is in shoot up tremendously. But at at any time we lose the 391 level, we likely head to new lows.
The More Detailed Recap:
(Paid subscribers, below is an update on all current positions with charts as well as new ideas. Enjoy!)