- Market was up, but turned lower because of the ‘tax-the-rich’ comment.
- Looks like a forced sell-off. Market is looking for a reason to correct.
- Nonetheless, I think the sell-off is short-lived.
- The overall market sentiment remains bullish.
- In addition, the ‘tax-the-rich‘ policy is difficult to get enforced.
On the daily Renko chart, is it building an M or a W? Today’s upward momentum was terminated by Biden’s ‘tax-the-rich’ comment. The index was so close to the all time high and all of a sudden, it quickly dropped 30+ points. It’s back to the all-too-familiar 4110 – 4140 support zone. If this support zone does not hold, it will test the next level of support between 4060 and 4090.
It will be a W formation if 4110 support holds.
Market momentum is still high and bullish.
There is not very much negative news out there.
