Market analysis is not just the one dimension of price patterns. There are four dimensions, Price, Time, Sentiment and Momentum.
Today 6/28/18 there were strong signals from the dimensions of Sentiment and Time that may have signaled a bottom for the SPX.
Sentiment: Note that today the Put/Call ratio has reached the same level that it was at durning the May 3rd bottom.
Time: New moons usually signal stock market tops, full moons usually signal stock market bottoms.
Note that today was a full moon. Last top occured on a new moon.
Price: Slow choppy and overlapping declines are the signature of corrective patterns. The market is struggling to go down.
For the last two weeks I've noted the SPX was in a neutral zone. The picture is clearing up. In the very short term,if the SPX continues lower
there's very strong support in the areas of SPX 2675. If necessary I will have a future post about why SPX 2675 has strong support.
Resume going long SPX and other large cap stocks. Avoid RUT and small cap stocks.
I still expect the SPX to reach the 3050 area in July or August.
Mark
Today 6/28/18 there were strong signals from the dimensions of Sentiment and Time that may have signaled a bottom for the SPX.
Sentiment: Note that today the Put/Call ratio has reached the same level that it was at durning the May 3rd bottom.
Time: New moons usually signal stock market tops, full moons usually signal stock market bottoms.
Note that today was a full moon. Last top occured on a new moon.
Price: Slow choppy and overlapping declines are the signature of corrective patterns. The market is struggling to go down.
For the last two weeks I've noted the SPX was in a neutral zone. The picture is clearing up. In the very short term,if the SPX continues lower
there's very strong support in the areas of SPX 2675. If necessary I will have a future post about why SPX 2675 has strong support.
Resume going long SPX and other large cap stocks. Avoid RUT and small cap stocks.
I still expect the SPX to reach the 3050 area in July or August.
Mark