There are four market dimensions; Price, Time, Momentum and Sentiment. Within each dimension there are many sub indicators. On 7/3/19 a powerful
momentum signal was registered for US stocks - all three main US stock indices; SPX , DJI, and Nasdaq Composite recorded all-time highs.
What's very interesting about the DJI high is that it was made without strong participation by its strongest component - Boeing (BA). I started recommending going long BA on 3/18/19. Since then in spite of continuing bearish news the stock refuses to have a large downside break. The Technical picture for BA is still bullish and it could soon make a new all-time high. If BA can reach a new high the DJI could rally another 10%.
Recently "Investor's Business Daily" using their CANSLIM method noted that Facebook (FA) Amazon) ( AMZN ) and Netflix ( NFLX ) were all close to buy points. Using the CANSLIM method, stocks are at their best purchase points when making new highs- specifically when they break above the high point of a "Cup with Handle" formation. The buy points are FB = 198.58, AMZN = 1964.50, and NFLX = 386.09. If these stocks which have been market leaders for several years hit their buy points the Nasdaq could rally another 10%.
Within the Time dimension the SPX continues to follow the analogy with the 1987 SPX bull market, please see my post on this subject.
This is a very narrow pathway that the SPX must follow. There is very little leeway.
The SPX needs to continue moving up strong in the next two to three weeks, otherwise something else is happening.
My primary Elliott wave count posted on this chart is based upon evidence from the Momentum and Time dimensions. If this count is correct the SPX is about to enter a "third of a third" wave up which is usually the strongest and most dynamic part of a developing five wave impulse pattern. This is exactly the type of action needed to break potentially very powerful Fibonacci resistance at SPX 3047 - which I have been posting about since January 2018.
On 7/3/19 trading view member - The Swinger had a very good SPX post. On the chart The Swinger illustrates a rising trend line connecting the SPX January and September 2018 peaks. For every Elliott wave bullish count there's always an alternate bearish count. The rising trend line hints that the SPX from January 2018 could be forming an Expanding Horizontal Triangle, if so the current rally from December 2018 could be wave "D" with a top at or just above the trend line - perhaps near 3047? If this is in effect and the SPX tops in that zone the subsequent wave "E' decline could last several months and bottom below the SPX late 2018 low of 2346. I will have further posts on this subject if the SPX stalls in the low 3000 area.
If the SPX can decisively break above 3047 it opens the door for a move up to the next major Fibonacci resistance zone in the low 3300 area, time target late August to early September 2019.
Mark
momentum signal was registered for US stocks - all three main US stock indices; SPX , DJI, and Nasdaq Composite recorded all-time highs.
What's very interesting about the DJI high is that it was made without strong participation by its strongest component - Boeing (BA). I started recommending going long BA on 3/18/19. Since then in spite of continuing bearish news the stock refuses to have a large downside break. The Technical picture for BA is still bullish and it could soon make a new all-time high. If BA can reach a new high the DJI could rally another 10%.
Recently "Investor's Business Daily" using their CANSLIM method noted that Facebook (FA) Amazon) ( AMZN ) and Netflix ( NFLX ) were all close to buy points. Using the CANSLIM method, stocks are at their best purchase points when making new highs- specifically when they break above the high point of a "Cup with Handle" formation. The buy points are FB = 198.58, AMZN = 1964.50, and NFLX = 386.09. If these stocks which have been market leaders for several years hit their buy points the Nasdaq could rally another 10%.
Within the Time dimension the SPX continues to follow the analogy with the 1987 SPX bull market, please see my post on this subject.
This is a very narrow pathway that the SPX must follow. There is very little leeway.
The SPX needs to continue moving up strong in the next two to three weeks, otherwise something else is happening.
My primary Elliott wave count posted on this chart is based upon evidence from the Momentum and Time dimensions. If this count is correct the SPX is about to enter a "third of a third" wave up which is usually the strongest and most dynamic part of a developing five wave impulse pattern. This is exactly the type of action needed to break potentially very powerful Fibonacci resistance at SPX 3047 - which I have been posting about since January 2018.
On 7/3/19 trading view member - The Swinger had a very good SPX post. On the chart The Swinger illustrates a rising trend line connecting the SPX January and September 2018 peaks. For every Elliott wave bullish count there's always an alternate bearish count. The rising trend line hints that the SPX from January 2018 could be forming an Expanding Horizontal Triangle, if so the current rally from December 2018 could be wave "D" with a top at or just above the trend line - perhaps near 3047? If this is in effect and the SPX tops in that zone the subsequent wave "E' decline could last several months and bottom below the SPX late 2018 low of 2346. I will have further posts on this subject if the SPX stalls in the low 3000 area.
If the SPX can decisively break above 3047 it opens the door for a move up to the next major Fibonacci resistance zone in the low 3300 area, time target late August to early September 2019.
Mark