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.***
@streetgainer, The top was not 4 months ago. Fractals repeat until they don't... this is part of human psychology (trading). MPC simply laid out the fractals, and is now showing what's invalidating them in his opinion. That's not being the 'worst', that simply not being married to a bias. traders need to be unemotional to the outcome.
streetgainer
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@Procinctu,"The chart indicates that the next major peak could occur about two years from now. So, I believe that the stock market is entering a brand new expansion of the bull market, which should last for a considerable amount of time, carrying equity prices higher in the coming years." ..... Lol!!!
Not the top!?.. look at the es monthly. Everything above ~3.1k was being sold to the next sucker in line. That's a top.
But yeah, you keep drinking this koolaid he's stirring.
UnknownUnicorn1375590
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@streetgainer, loooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooool
What a joke!
Fractal777
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Big buying at the close suggests a bottom of sort....wave 4 up early next week.
Profit_Link
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@Fractal777, The buying at the close of the day was likely the Plunge Protection Team, i expect a bounce, but what happens after the bounce is what is important.
Fractal777
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@Profit_Link, Expect a bounce for a day or maybe two...then either wave five down or possibly wave three of three!...either way lower lows are coming.
Profit_Link
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@Fractal777, Exactly my thinking, the bounce could potentially be a savage short covering rally, before getting sold into again.
streetgainer
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@Fractal777, @Profit_Link Movement in China has come to a halt. This is a fact... earthobservatory.nasa.gov/images/146362/airborne-nitrogen-dioxide-plummets-over-china which results in a MAJOR disruption to the supply side chain here in the US and abroad. The proverbial "engines have stopped" is in play. This is simple economics 101. It's not only China's output being disrupted but also their imports and buying. China has been one of the largest buyers of gold since the trade war tariffs... bloomberg.com/news/articles/2019-10-07/china-s-gold-buying-spree-tops-100-tons-amid-prolonged-trade-war pushing prices higher even as equities and the USD went up. I leave it to you figure out why gold took the LARGEST nose dive since 2013 over the past few days. It's not only China though, but I'll leave you with that. Honestly, I haven't seen this level of stupidity in market participants in quite some time.