Morning Market Update 8.16.22: Markets Very Confident
US Markets
This morning I thought I’d try something different. Updating my coverage list in one post. (Comment if you like or would rather have dedicated posts). I’ll start with the US Markets. The main chart above shows the S&P Futures advancing or consolidating at the highs. I am starting to see a more bullish or technically constructive article flow from the financial news sites I frequent. Sadly, these are expected in counter trend moves. However, that doesn’t mean that this sort of constructive price action can’t continue. One telling point is the MACD showing “Hidden Bearish Divergences” building in the daily chart, along with outright negative divergence on the intraday charts. I suspect price will decline or at the very least take a break possibly starting today. In the US Markets my primary path is this is the B wave high shown in black. Over the course of the next several months I believe we will revisit the lows and breach them. The purple count is alternative analysis which is also valid and shows we're just 1/3 of their way to topping...sometime in October.
Solana
The above 15 minute chart shows how the recent price action is testing the limits of my black count. We're on the verge of invalidating any Bullish analysis from a pattern perspective without at least a sizeable decline to reset. Perhaps today Solana price will decline and put an end to one of the ugliest advancing patterns I have seen in a while. A breach of $42.07 will do just that.
Ethereum
This has been a text book advance. The topping process is playing out in the MACD indicator. Clearly showing as price advanced in the last portion of this wave IV the MACD indicator did not (shown in Red) . This negative divergence will give way to the decline we're anticipating I believe once price can get below $1800.
Bitcoin
Bitcoin's advance has petered out and also shows significant negative divergence in the MACD indicator. However until we can get below $22,800 we have to look to the next Fib resistance around $26800.
This morning I thought I’d try something different. Updating my coverage list in one post. (Comment if you like or would rather have dedicated posts). I’ll start with the US Markets. The main chart above shows the S&P Futures advancing or consolidating at the highs. I am starting to see a more bullish or technically constructive article flow from the financial news sites I frequent. Sadly, these are expected in counter trend moves. However, that doesn’t mean that this sort of constructive price action can’t continue. One telling point is the MACD showing “Hidden Bearish Divergences” building in the daily chart, along with outright negative divergence on the intraday charts. I suspect price will decline or at the very least take a break possibly starting today. In the US Markets my primary path is this is the B wave high shown in black. Over the course of the next several months I believe we will revisit the lows and breach them. The purple count is alternative analysis which is also valid and shows we're just 1/3 of their way to topping...sometime in October.
Solana
The above 15 minute chart shows how the recent price action is testing the limits of my black count. We're on the verge of invalidating any Bullish analysis from a pattern perspective without at least a sizeable decline to reset. Perhaps today Solana price will decline and put an end to one of the ugliest advancing patterns I have seen in a while. A breach of $42.07 will do just that.
Ethereum
This has been a text book advance. The topping process is playing out in the MACD indicator. Clearly showing as price advanced in the last portion of this wave IV the MACD indicator did not (shown in Red) . This negative divergence will give way to the decline we're anticipating I believe once price can get below $1800.
Bitcoin
Bitcoin's advance has petered out and also shows significant negative divergence in the MACD indicator. However until we can get below $22,800 we have to look to the next Fib resistance around $26800.
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