Market analysis requires study of all four dimensions; Price, Time, Momentum and Sentiment.
Part of the Momentum study requires examining the international stock indices. Sometime a national stock index you don't even trade could be giving important signals
that could make you profitable in the national stock index you do trade.
It all about relative momentum of one index vs. another' which began with the Dow Theory study of the industrial stocks vs what used to be called the rail stocks.
Tonight the Shanghai Composite (SHCOMP) is having a HUGE RALLY up over 4%. Why is this important? Well, since January 2018 SHCOMP has decline 31% its the weakest large economy stock index in the world. The decline since January has been a clear five wave Elliott pattern into an intermediate support area. One trading day ago SHCOMP plunged into this support then dramatically turned. Tonight there strong follow through. SHCOMP could be in a large bear market, but no market moves in a straight line. SHCOMP has probably started at least a two month counter trend rally.
It makes no sense what so ever that the US stock market which is the strongest bull market in the world would decline while the weakest stock index is rallying.
Why have I not posted a SHCOMP chart? Because hardly anyone would view the chart. Hey, their not trading that index, no need to bother seeing what's going on there.
BIG MISTAKE! What's happening in the SHCOMP tonight could have huge implications for the US stock market and the entire global stock market.
By the way the SPX chart I posted has some cool stuff on it. I believe that the micro crash in the US market is probably done. High probability the 10/11/18 low could hold.
My SPX target for major peak remains 3050. Time forecast January to February 2019 - more about this later. Enjoy.
Mark
Part of the Momentum study requires examining the international stock indices. Sometime a national stock index you don't even trade could be giving important signals
that could make you profitable in the national stock index you do trade.
It all about relative momentum of one index vs. another' which began with the Dow Theory study of the industrial stocks vs what used to be called the rail stocks.
Tonight the Shanghai Composite (SHCOMP) is having a HUGE RALLY up over 4%. Why is this important? Well, since January 2018 SHCOMP has decline 31% its the weakest large economy stock index in the world. The decline since January has been a clear five wave Elliott pattern into an intermediate support area. One trading day ago SHCOMP plunged into this support then dramatically turned. Tonight there strong follow through. SHCOMP could be in a large bear market, but no market moves in a straight line. SHCOMP has probably started at least a two month counter trend rally.
It makes no sense what so ever that the US stock market which is the strongest bull market in the world would decline while the weakest stock index is rallying.
Why have I not posted a SHCOMP chart? Because hardly anyone would view the chart. Hey, their not trading that index, no need to bother seeing what's going on there.
BIG MISTAKE! What's happening in the SHCOMP tonight could have huge implications for the US stock market and the entire global stock market.
By the way the SPX chart I posted has some cool stuff on it. I believe that the micro crash in the US market is probably done. High probability the 10/11/18 low could hold.
My SPX target for major peak remains 3050. Time forecast January to February 2019 - more about this later. Enjoy.
Mark