April 19th, 2024

Capitulation low? Maybe, but the bulls aren’t out of the woods yet. Lows like last night can be ‘the low’ as a headline took us lower, and we did see a capitulation-type of low made, but the technicals are still bearish in the medium term, and I expect it to be very choppy for today’s session as the market feels out this low made overnight.

I don’t love days like today. It’s a Friday on a week that’s been very clear to me on the technicals, sell the rallies and now we have this low made overnight that may be the low, and it will be a big tug of war today.

The only way I see trading days like today is to watch the open, let the dust settle, and see if a clear setup comes in after the opening volume hits the tape. I can see a big rally today, or I could see us going back down to the overnight lows. I think it’s likely the overnight lows hold, but we’re just another headline away from being back there in a flash.

My goal is to always give it to you straight and let you know what market environment I believe we’re in, but after last night’s move, I don’t have a clear picture, and the market needs some time to digest what happened. Just be small and smart with your decision-making. Don’t ruin your weekend by overtrading a foggy tape.

Wishing you all a wonderful and peaceful weekend.

Cheers, DELI