I'm looking for the rejection near the 50 MA, fibs, and cloud here in the daily timeframe. Rejection at the 10-week MA in the weekly timeframe. Looking for a test of the March 23 lows to 2100-2150 for a tradable bottom. Should it form, I'm looking for a larger rally to 3000-3100 for a counter trend that will be followed by an even bigger selloff back towards 1650-1810 level. My target level is approximately 1708, which is the 61.8 fib from the 2009 low of 666. That is after a tradable bottom and a larger counter trend. See the video at thechartpatterntrader.com/
interesting. HMA 50 is support. And SMA 50 is resistance. The 50 day averages are controlling the market tightly.
Wedge up doesn't close until mid-May (15-18). Think we a slightly bullish until then. Which is the 3000 and 3100 levels.
Then we go neutral (sideways). IMHO. (I was surprised by the 50 day last night).
z3m25
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What's your thoughts if it opens above the 2,872 mark (50 day)? Fighting this fed and the cheerleader in chief is harder than one would think. Bad new, the market goes up. Good news, the market goes up even further.
The_Chart_Pattern_Trader
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@z3m25, If we clear the 61.8 % fib retracement and clear the Ichimoku cloud then the door is open to a larger counter immediately happening. I expect rejection at the upper boundary of the rising wedge. If we clear the resistance levles I spoke of then, the rising wedge will fail and we can get the larger counter trend. My guess is that we get rejection and test the lows.
The_Chart_Pattern_Trader
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@z3m25, These the clouds and oscillators correctly predicted the selloff before it happened and the March low using the intraday, daily, and weekly charts. It is about support and resistance.
z3m25
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@The_Chart_Pattern_Trader, I don't disagree and I made a ton on the way down, I just thought I'd hang onto it longer than a month LOL. Again, much appreciated.
z3m25
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@The_Chart_Pattern_Trader, So hard watching the irrationality this time around. Because of what I do I think it's hard for me to see anything other the spx 2,000. Being short is killing my account on this rise up. It'll be interesting to see if the top of that wedge holds. Some are pointing to the 100 day before resistance. It doesn't help when everyone is disregarding the earnings or next quarters earnings which also makes no sense but momentum is always king. Much appreciated Man.
Wedge up doesn't close until mid-May (15-18). Think we a slightly bullish until then. Which is the 3000 and 3100 levels.
Then we go neutral (sideways). IMHO. (I was surprised by the 50 day last night).