Reversal Imminent? 28th November 2022

🖼 Daily Technical Picture 📈

➤ Price action for most of the equity indices are potentially close to price reversals. An exit signal was given for my long position in EUSTX50 (STOXX50) but not yet a short signal.

➤ For a short signal, I think we need to see a large down bar/candle. This down bar should at a minimum reverse the price gains on 23rd November to offer some bearish conviction. If this does occur, we need to be very cautious as it may be a "false" signal. False short signals happen often when there has been strong momentum to the upside.

➤ As mentioned in my previous post, ideally, if price can extend gains to 410 on the SPY and VIX hits 20, that would offer a more compelling area for shorting given past precedence.

➤ I remain long with a +51% long exposure. The maximum portfolio exposure is +/- 200% on capital, the level of highest conviction.

➤ Conclusion: Looking for a price reversal. Just a matter of time...