Stocks Reject Higher Levels

4 feb 2022

Stocks have showed some weakness after rejecting higher levels at 4580. We appear to have topped out at this level for now with several red triangles on the KRI confirming prohibitive resistance for now. The Kovach OBV has taken a notable dive downward, but we have found support for now at 4462. We might be forming a bear wedge with a lower bound at this level. If we are able to break through, we should see good support at 4440, otherwise we will enter the previous value area between 4272 and 4440 again. If we see a burst of momentum, then 4580 must be broken before we attempt higher levels in the 4600's.