S&P500 Fractal Shows Weakness, As Coronavirus Causes Panic!
I first showed this fractal of the S&P500 September 9th, 2019, when the S&P was at 2982. In that analysis, I showed how a pattern had emerged on the weekly moving averages. You can see that, beginning from the left side of the chart, price first held on the 200 week MA (pink circle.) Then price rallied above the 50 week MA and held it twice (two green circles.) From there, price went on a long bullish rise. The first warning signal of a slowdown was when price retested the 50 week MA (yellow circle.) A while later, price broke down below the 50 MA, and held new support on the 200 MA (pink circle.) As you can see, the cycle repeated itself perfectly, all over again.
However, I've noticed that the time from the second test of the 50 week MA (second green circle) to the warning sign (yellow circle) has been getting shorter and shorter. The first time it happened, it took about 700 days. The second time it happened took about 511 days. Now, it appears as though we may be testing the 50 week in the very near future. If that happens, only about 210 days have passed. So, in my opinion, it's a sign that the strength of this fractal is becoming increasingly weak. Coupling that with my recession indicator (which is close to signaling) and you can see that we could be close to a major breaking point in this eleven year old bull market — the longest lasting bull market in modern history.
Just from a longevity standpoint, we have to consider that this market may be wobbling on it's last leg.
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-
However, I've noticed that the time from the second test of the 50 week MA (second green circle) to the warning sign (yellow circle) has been getting shorter and shorter. The first time it happened, it took about 700 days. The second time it happened took about 511 days. Now, it appears as though we may be testing the 50 week in the very near future. If that happens, only about 210 days have passed. So, in my opinion, it's a sign that the strength of this fractal is becoming increasingly weak. Coupling that with my recession indicator (which is close to signaling) and you can see that we could be close to a major breaking point in this eleven year old bull market — the longest lasting bull market in modern history.
Just from a longevity standpoint, we have to consider that this market may be wobbling on it's last leg.
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-
Comment:
www.tradingview.com/...or-Years-to-Come-ES/