The S+P 500 has created a high risk "throw over" pattern, which if violated , could send the S+P plummeting back towards the March 2020 lows of 2191.
This same type of" initial bullish breakout pattern", in the summer of 1987, ultimately failed.. and the "failure of that throw over pattern led to the stock market crash of October 1987.
Bearish divergences continue to mount, and market leadership continues to concentrate in big high cap tech stocks. Big money is floating in the "big boat of technology', noticeably all at the same time.
The thinking is that these mega cap stocks, which have earnings released this Thursday 7/30/20 will provide big money the ultimate"cush 'in earnings, to survive whatever time it takes to outlast the dreaded unseen "pandemic"
But put another way. The great Titanic of money the stock market, sails in the best high class manner, bringing royalty to their ultimate destination
However, if you remember,it was the "iceberg" they didn't see, that ultimately doomed them all,.. to the bottom of the sea.
Titanic did not have enough lifeboats to save everyone on board. She only had enough lifeboats to take about a third of the ship's passengers. It complied with the maritime safety regulations of the time. One could heretically say it was meant to be "by design".
To me, the last 1900 point drop was a warning. SPX managed to work it's way back above that big drop and fill the gap with alot of effort. It's a pretty weak breakout. It doesn't inspire confidence and looks like high risk betting on further upside.
ProfitHarvest
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Well said!
maxaus
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@The_Unwind This time I agree with your thought. Market has been stalling for a few weeks now which is the obvious sign of topping. Trump is seeing a failure in polls and Reps and Dems can't agree on the next stimulus. All of the above shows great uncertainty for big investors and looks like we are quietly sliding same as it started happening at the end of Feb 2020. No one saw it coming. Closed my longs On Friday. Opened shorts. Here we come, how far we dip this time will be anyone's guess. This is your second chance guys. Personally, I don't wanna miss the show. I'll be standing on the top of the iceberg this time :)))
Full steam ahead...
Just in time for holiday season, too.
Would be even more lucrative for big money if pensioner retailers were aboard the cruise ships, away from their charts