This afternoon the market handed us a test.
We were running strong all morning.
Then around 1PM it pulled back. A sharp selloff that dropped us back through the levels I had been watching, shook out a lot of positions, and had people second-guessing the whole move.
I watched it the whole way down and I did not panic. Here is why.
My 40 held. The W-shape that had been building through the afternoon was still intact.
The wicks on the down candles told me sellers were trying to push lower and buyers kept stepping in underneath. The momentum slowed but it never actually rolled over.
That is the difference between a pullback and a reversal. A pullback tests you. A reversal breaks the structure.
The structure never broke.
The buyers came back, reclaimed the levels, and we pushed through $693.67 into the close. That is the reclaim I needed to see.
Now here is the honest part. We are sitting at serious resistance. The close was strong but we are right at a level that needs to prove itself.
The market wants to go higher and today showed it has the muscle to hold a test. Whether it has the catalyst to break through is a different question.
Tomorrow will answer it.
Mark and I are going live tomorrow for State of the Market at 10 AM ET.
We are pulling up the charts, looking at what overnight did, and walking through exactly what I am seeing before the open. If you want to know where I stand before the first candle prints, that is where to be.
Rock On,
Voz