If you turn on the news or read the paper, there's no way this market could go higher, right?!....not so fast - let's take a peek under the hood to check the engine.
In posting this update today (03/30/2023), there is an ominous black doji candlestick (a sign of indecision), which if it holds into the market's close, tells me that we may get a minor pull back from here to possibly re-test the pink dotted breakout line - again, any resistance or support line that gets touched multiple times, usually gets re-tested on a breakout or breakdown. Assuming it holds the line and can follow the general path of the green arrows, the odds increase that this market has a chance to actually make a sustainable breakout. If, however, the market tests the pink line and cannot hold it, it could follow the path of the red arrows, where we may not have seen the worst yet. Although we are actively adding positions to our portfolio sleeves where we are receiving buy signals from our proprietary trading algorithm, we will be quick to remove them should the market decide to break down versus up in the short to mid term. For now I'm cautiously optimistic, at least until the market's next oil change.
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