Total Solar Eclipse

The market failed to continue with its Head and Shoulders pattern. The Dow Jones 30 and S&P500 index are now testing the June high level. Nasdaq Composite Index has already broke the June high. The June high for Dow Jones 30 and S&P500 index are now the natural resistance. I would love to see the market drops from this level. The Stochastics and RSI are at a level showing an overbought position. The market euphoria is still high and retail traders (not necessarily the big players) expect to push the market further.

Interestingly, the chart pattern for GBP/USD and EUR/USD are somewhat similar to the major equity index.

While the market wants to test the June high and perhaps for Dow to test the 9000 level, I am not sure if the currrent rally can sustain, at least for now. I expect the market to pause and drop perhaps from this week onwards.

On the natural phenomena front, the total solar eclipse is due to happen tommorrow morning. At six minutes 39 seconds, it is the longest solar eclispse in this century. Some scientists expect more natural calamities to happen due to greater movements of the earth tectonic plates. Already, a few earthquakes had happened around the world over the last few weeks. Soothsayers and astrologers are shouting more dangers and calamities during the total solar eclipse. Whether they are to be believed is another story. My concern is whether there is a big swing in the market pyschology (the market is made up of humans) should any of the calamities happens. If it is, the market would then react accordingly and drop without any warning. How convenient can it be - dropping from the resistance level !

Cheers !

PersianCat (Millionaire-in-progress)