July 2023 Recap

July 2023 emerged as a month marked by determination and persistent bullish sentiment in the stock market. Building upon June's positive performance, the markets continued their ascent, setting their sights on a significant target—an unfilled bearish gap from January 2022 (Bearish Gaps explained in the Candlestick Formations eBook).

June 2023 served as a turning point, with the stock market showcasing its potential for growth with the Quarterly shift higher. Investors and traders embraced a positive outlook, and this sentiment spilled over into July. The momentum from June's impressive run persisted, underlining the resilience of the market.

During June, the markets demonstrated their ability to overcome challenges and regain their footing. This resurgence invigorated traders and investors, who recognized an opportunity to capitalize on the market's recovery.

The market was "Risk-On" as the Dollar dropped in the first half of the month. After taking out the equal lows from January, and April-May price quickly reversed and this dynamic caused the Bulls to slow down as it ran into resistance above in late July (shown above).

As July unfolded, the focus of market targets turned toward a notable point of interest—a bearish gap dating back to January 2022. The stock market, with its continuous retracement, aimed to revisit this lingering gap (shown above in yellow). This endeavor signified an important step in re-establishing price balance in this area of premium.

The journey toward closing the gap symbolized the determination to address sell side imbalances and restore equilibrium in price. This retracement was a clear example of how the market can methodically address past anomalies to pave the way for more confident trading and investing as targets are seeked.

July 2023 tells a story of resilience and progress in the stock market. The steadfast continuation of June's bullish momentum signifies the market's ability to rebound and navigate challenges effectively as price delivered higher.

The focus on retracing to fill the bearish gap from January 2022 highlights the commitment to addressing past market anomalies and restoring order. Such endeavors not only provide target opportunities for traders but also lay the foundation for a more stable and predictable market environment moving forward. This gap is one of the last lines of defense for the Bulls. If price closes above this gap with a displacement(big meaty candle) than we will likely push for all time highs. If not, it's down we go time.

As we move forward, it's essential to recognize the significance of this journey higher and price's reaction to this level with its impact on market dynamics. Understanding the lessons from July allows traders and investors to make more informed decisions in their pursuit of financial success in the coming months.