S&P500 Currently BELOW 50 Week MA, Must Recover Today or Fall!
This morning on the weekly S&P500 chart, we can see that price is well below the 50 week MA (in orange.) Today is the last day of the week. So, if we don't see a recovery above the 50 week MA, that would be a deviation of the fractal pattern shown on the chart, which I have covered in recent analyses. For those unfamiliar, this is the fractal...
1. Support on the 200 week. (purple circles)
2. Rally above the 50 week.
3. Two major holds of support on the 50 week. (green circles)
4. Extended rally.
5. Test of the 50 week. This is a warning sign! (yellow circles)
6. Breakdown below the 50 week.
7. Support on the 200 week. (purple circles)
If we don't see a recovery above the 50 week MA, then the fractal will have deteriorated. In that case, I think prices are likely to fall to the 200 week for a test. Unfortunately, I don't think many traders will be willing to gamble with money on the table over the weekend, while news of the coronavirus could worsen, leaving them with devastating losses on the open next week — but we shall see. This is a make or break moment for the fractal. A recovery here will be a continuation of the fractal. A breakdown will be a deviation from it.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
1. Support on the 200 week. (purple circles)
2. Rally above the 50 week.
3. Two major holds of support on the 50 week. (green circles)
4. Extended rally.
5. Test of the 50 week. This is a warning sign! (yellow circles)
6. Breakdown below the 50 week.
7. Support on the 200 week. (purple circles)
If we don't see a recovery above the 50 week MA, then the fractal will have deteriorated. In that case, I think prices are likely to fall to the 200 week for a test. Unfortunately, I don't think many traders will be willing to gamble with money on the table over the weekend, while news of the coronavirus could worsen, leaving them with devastating losses on the open next week — but we shall see. This is a make or break moment for the fractal. A recovery here will be a continuation of the fractal. A breakdown will be a deviation from it.
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-