Im mainly focusing on the legitimate technical analysis of Double Bottoms and Double Topps on the S&P500 $SPY. The main big question is are we in the process of forming out a Double top or bottom? A double top (M) signals a drop in trend and a double bottom (W) signals a rise in trend. Their are also triple tops and bottoms that are the same thing with an extension of one more top or bottom to their shape and are typically more guaranteeing the upcoming trend change. It looks as if after all this trading catastrophe all year it has overall been forming a gigantic pretty good shape formation of a Double bottom or top. My personal prediction is that we are in the process of forming a short term Double top leading to a drop in price just to then reverse upwards completing the formation of an overal triple bottom pushing the index back up to or surpassing its previous highs of last year. Evidence supporting this theory comes from analyzing the DXY US Dollar Index and the VIX Volatility Index. While both of these indexs rise the S&P500 at the same exact time will fall and the same in reverse, as they fall the SPY will rise. Since lower Volatility and a lower Dollar Index result in higher stocks every time while rising volatility and a dollar index results in stocks falling like we have seen all year long. You can match up the tops and bottoms just by watching when either the DXY or the VIX bottom or top out. A way to know is by keeping a close watch on their Relative Strength Indicators better known as the RSI. When the RSI is at or above 70 it is signaling an overbought top while when it is at or below 30 it is signaling an oversold bottom. It is good to use these as best time to time buys and sells at, buying at oversold and selling at overbought.
Good Luck everyone.
Good Luck everyone.