Decisive day if bounce is to continue
Yes ESS lost 1.5c to finish on 48.5c. Our volume was average, just over 2.9m shares traded.
ASX Li stocks had a small decline. Of the 54 stocks that I track, average decline was 0.5%.
What next -
On Friday I had said that there is a 50% chance of a big drop. The bears won the day with a big decline on indices, between 2 to 3%. ASX followed today with a decline of around 1.5%.
As I mentioned on the weekend, the stock market is at another pivotal point. The trading tonight may determine if we are going to have a bounce which started on Thursday. At this stage there is a fair chance that it may happen, but probability is less than that it may go down towards a new bottom.
If we are to rise and see the bounce happening, for SP 500 there are a number of resistances above. But for a proper bounce a target of 3800 (after 3700) can be considered. If we are to go down, crucial would be if are to hold the low from Thursday on SP 500 of 3491. The first target if this fails is 3400/3420 mark, a final target around 3250.
Personally I bought a few more today, so now 75% invested and 25% cash. If the bounce does not happen, then I may see what to do. Since the final bottom is near, I am hoping stocks may hold their line with slight decline if bounce does not happen, although there is always a chance it can keep going down as die-hard bears have been calling. But at this stage, a final or tradeable bottom happening in October has a high probability.
So what will happen tonight? US Futures slightly in green. Asian markets largely red. Cryptos holding the line - Bitcoin just above 19k. No major announcement, though some earnings report. So both technical and fundamental may be in play tonight, but nothing very big. There is a small probability that we may have seen the October bottom on Thursday, so we should go up from here if that is the case. Will that happen? Lets hope so. All the best.
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