Below Overhead Supply

JC Parets
June 16, 2022

We give them fancy names like Bear Markets or Downtrends.

But all it really means is that the price of an asset is below overhead supply.

As investors, it's important to know that there are sellers at higher prices waiting to sell to you if/when given the opportunity.

While there are an infinite number of examples in the current market environment, the S&P500 offers a clean look at exactly this:

Classic Polarity Principles have taught us that former support tends to turn into resistance.

This is what we're seeing in this chart above.

So either the buyers will show up at lower prices, down near 3400, or the buyers will absorb that overhead supply and get back above 4100-4150.

I'm good with either. We have to be open to all possibilities.

Let's discuss this on Monday night. I'll be hosting our Live Mid-Month Conference Call.

We have a lot to talk about. Premium Members can register for that on this page.

JC

 

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