Harbinger of Boom: Consolidation B4 a Move Down for the S&P 500
Looks like some consolidation around 4100 for the S&P before a potentially big move. The daily MACD might be turning over at the current resistance level around 4100. Some confluence exists here as this same 4100 resistance level that we are bumping up against now is also the 1.618 Fib level generated by the March 2020 downturn (shown here as the orange horizontal line).
If we face a rejection off the 4100 resistance level I might go out on a limb to suggest the S&P finds its way back to 3800, aka the top of the downward sloping channel that was established back in January of 2022. If I was to climb ever more precariously out onto that limb, I might pull out an old quote: "Show me the charts and I'll tell you the news" to suggest that maybe we get some negative reaction to the CPI print tomorrow?!
Volume has been low for a couple weeks leading up to the CIP print, so perhaps we rip. I'm a little bit bearish here, hoping for some excitement.
If we face a rejection off the 4100 resistance level I might go out on a limb to suggest the S&P finds its way back to 3800, aka the top of the downward sloping channel that was established back in January of 2022. If I was to climb ever more precariously out onto that limb, I might pull out an old quote: "Show me the charts and I'll tell you the news" to suggest that maybe we get some negative reaction to the CPI print tomorrow?!
Volume has been low for a couple weeks leading up to the CIP print, so perhaps we rip. I'm a little bit bearish here, hoping for some excitement.