Over the past few weeks I’ve mentioned the scarcity of good quality setups, and last week my main take was that the market was not ready for a new upswing, and chaotically bouncing around the Key Levels was more likely.
That’s exactly what happened … until Friday when the rains poured!
The catalyst to this was of course the collapse of Silicon Valley Bank, which took less than 24-hours from start to finish in the most dramatic scenes seen on Wall Street since 2008.
The most likely scenario from here is that the FDIC will calm the situation in the next few days, but the market is now likely to test those January lows. If they fail, then the June lows will hove into view.
Last week I keep counselling patience … Be the lion and not the headless chicken. Sound guidance!
Personally, I think another leg down is what the market really needs in order to provide the rich seam of setups that makes us happy traders.
So again, this is prime lion time.