Weekly Update: Market Analysis for the Intermediate Term
I have long opined on how I believe the SPX/ES gets to my initial downside target of 3200 to high 2800 area.
This week I will dispense with the long-term warnings, and provide some intermediate context. This market is transitioning from “Buy the Dips” which has worked as a strategy for the better part of 2 decades to “Sell the Rips”. That is not to say our “Rips” will not have meat on the bone so to speak.
Let’s start with where we are now. We are currently in the middle of carving out a complex w-x-y pattern for our b-wave low in the area of 3772-3653. A breach of 3788 is a target I have been discussing in our trading room for a while now. Upon getting into my target box, I plan on designating the summer of 2023, as "The Summer of LOVE"...lol. This is where traders LOVE the long side once again. This could constitute a RIP that has a lot of MEAT on the bone. We're talking about a potential move up of 700-900 points.
I am speculating when I say, the sentiment would be during this rally that the FED has pivoted, inflation has moderated, "maybe scientists will determine that "Dogs and cats can live together in harmony" (Joke)...but this rally will only give way to a 3rd quarter to end of 2023 being dismal.
Why, you ask?
Because this is the last hurrah for "Buy the Dips" trading mentality. This gives way to despair, as we shed 30%-35% in short order.
I mean this sincerely when I say..."Stay Safe".
Best to all,
Chris
This week I will dispense with the long-term warnings, and provide some intermediate context. This market is transitioning from “Buy the Dips” which has worked as a strategy for the better part of 2 decades to “Sell the Rips”. That is not to say our “Rips” will not have meat on the bone so to speak.
Let’s start with where we are now. We are currently in the middle of carving out a complex w-x-y pattern for our b-wave low in the area of 3772-3653. A breach of 3788 is a target I have been discussing in our trading room for a while now. Upon getting into my target box, I plan on designating the summer of 2023, as "The Summer of LOVE"...lol. This is where traders LOVE the long side once again. This could constitute a RIP that has a lot of MEAT on the bone. We're talking about a potential move up of 700-900 points.
I am speculating when I say, the sentiment would be during this rally that the FED has pivoted, inflation has moderated, "maybe scientists will determine that "Dogs and cats can live together in harmony" (Joke)...but this rally will only give way to a 3rd quarter to end of 2023 being dismal.
Why, you ask?
Because this is the last hurrah for "Buy the Dips" trading mentality. This gives way to despair, as we shed 30%-35% in short order.
I mean this sincerely when I say..."Stay Safe".
Best to all,
Chris
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