LIVE @ 7PM: The Free Ride Summit with Alex & Graham.
Tune in to get FREE access to Alex’s newest trading tool!
Well, that escalated in a hurry.
Last Friday, announcements about a China tariff sent the markets to one of its biggest drops in months. The Bulls were no longer in control.
And now today has been super volatile while everyone worries about the depth of China’s tariff retaliation. It’s seemingly going from crash to bullishness from hour to hour.
Here’s the chart for SPY:
You can see the huge red bar down last Friday and then today’s big turnaround from negativity to positivity.
Looking at sentiment, we see pessimism growing. The Fear & Greed Index is way down from last week. We’re firmly in Fear mode:
But something has been happening to Estee Lauder stock. For quite some time, the once high-flying stock has been grinding steadily downward.
But it bounced hard in April, moved up strongly afterward, and has been in a tight channel for about twelve weeks.
That tight channel can mean it’s getting ready for a big explosion upward. It’s almost at a breakout level.
Here’s the chart for EL:
A move out of the channel and a break above $95.50 could lead to a huge run.
We’ll keep an eye on it.
Happy trading,
Scott
