Stocks At Highs!! Retracement??

9 feb 2021

Stocks have continued their ascent but are slowing down. Indeed, we are seeing higher highs, but at a decreasing extent. This suggests that a healthy retracement is coming. We are still 100% in bull mode, and would still solidly be so even with a retracement to 3824. A 50% retracement of the Fibonacci levels shown is much more likely, which could bring us to 3871. Of course, this assumes a healthy market not the bloated, fed fueled bubble of a stock market we have now. It is also perfectly reasonable under these conditions to break out again to new highs. If so, 3937 if a good target. Either way, it would be extreme FOMO to enter a long trade at this point, unless you expect an imminent breakout for some reason.