Uncertainty of Optimism.
Daily Plan 5.6.26
Traders—
What you have is a very strong market that refuses to cede an inch here. You can continue to see the quality and range of our calls here whether that is PLTR bear yesterday at 150 to 135 or AMD bull call at 340 to 400 today or even the weekly MU 540 with MU ending a 100 bucks higher on the session from that support. Every thing shared here before it happens.
What you have in the driver’s seat with us at the moment is this AI mania that’s taken hold. The market believes you have these bots amongst us who are now capable of learning on their own— this has created an upward drifting sense of uncertainty. No one really knows what these bots will be capable of in future.
This in a sense is the opposite of downward uncertainty and is right now prevailing over everything else— war, higher oil prices, higher bond yields— all are subjugated to this upward thrust caused by AI related positive uncertainty. Unbound optimism where the AI can and will lead to all sort of great things.
This is why I have been saying ever since SPX was at 6300 that we need to be cautious calling tops here. Anyways, if you want to see some sort of selling I will say we need to take that weekly support out and that would be a start.
Until then I do not see a bear case.
We can build on this 7270 for the session tomorrow. I think if we hold this level, we are headed higher into 7350 at some point next couple of sessions.
If we are able to offer below 7270, we could retest 7228 and that could be intraday support.
We last trade 7293 on emini S&P500. Follow the tape, do not be left behind.
~ TIC
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