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Alright, so today we encountered a big swing. While keeping a watchful eye, I couldn't help but notice I had seen a similar intraday swing somewhere else this year.... January 10th. Coincidentally this was also a Monday after a week of similar carnage. but...
More similarities
Let's look at news stories from the day of the 10th:
I'm not going to list everything. But it is noteworthy that there so happens to be another meeting this week, as well as earnings from big tech.
Even though rate hikes are shown not to affect the stocks (investopedia: how-interest-rates-affect-stock-market/), the market still punished big tech, an industry flush with cash. If you were to ask me, investors seem to want use anything as an excuse to sell, (poor earnings, Ukraine conflict, rate hikes, etc.). At first I thought this would be short term, but I believe after what happened last week we will be seeing another large drop, but not until a small bump upwards.
How high will the bump go? I used a modified Wave Trend Script made by mvdk (originally made by LazyBear). I saw similar oversold indicators for the same period. With this in mind, I predict an increase of ~7.5% to 14,823 after approximately 46H after the new low of this year. What happens afterwards? I suspect one last major selloff to ~-20% from ATH... but I'll leave that up to you.
What do you think?
Disclaimer: I own long positions in several of the companies listed in the NDX as well as other indices.
*I can't post links unfortunately since I do not have enough reputation points...More reason to like!*
Alright, so today we encountered a big swing. While keeping a watchful eye, I couldn't help but notice I had seen a similar intraday swing somewhere else this year.... January 10th. Coincidentally this was also a Monday after a week of similar carnage. but...
More similarities
Let's look at news stories from the day of the 10th:
- Bloomberg: "Stocks rebounded as dip buyers emerged to blunt a five-day selloff -- the longest losing streak since September. There are some real risks around rate hikes and whatnot, but if you look at some of the major tech companies that are falling, these companies have a massive cash moat,” Sylvia Jablonski, chief investment officer for Defiance ETFs, said on Bloomberg’s “QuickTake Stock” streaming program. “We’re in a fairly good spot, and these are great buy-on-the-dip opportunities right now.”
- Coast Reporter: "Markets will be watching for any signals on Tuesday when Jerome Powell testifies at his renomination hearing as Fed chairman"
I'm not going to list everything. But it is noteworthy that there so happens to be another meeting this week, as well as earnings from big tech.
Even though rate hikes are shown not to affect the stocks (investopedia: how-interest-rates-affect-stock-market/), the market still punished big tech, an industry flush with cash. If you were to ask me, investors seem to want use anything as an excuse to sell, (poor earnings, Ukraine conflict, rate hikes, etc.). At first I thought this would be short term, but I believe after what happened last week we will be seeing another large drop, but not until a small bump upwards.
How high will the bump go? I used a modified Wave Trend Script made by mvdk (originally made by LazyBear). I saw similar oversold indicators for the same period. With this in mind, I predict an increase of ~7.5% to 14,823 after approximately 46H after the new low of this year. What happens afterwards? I suspect one last major selloff to ~-20% from ATH... but I'll leave that up to you.
What do you think?
Disclaimer: I own long positions in several of the companies listed in the NDX as well as other indices.
*I can't post links unfortunately since I do not have enough reputation points...More reason to like!*