There was a massive volume spike on Friday and we are due for another intermediate cycle low. Usually that means that a top will occur a couple days later. I think I will watch the RSI. There is a massive bearish divergence from many months ago. Once the RSI reaches the red line, I feel it would be safe to short this. This could be the correction many have been waiting for. I am also looking for price to reach the blue line 2691 range. I don't think we will reach 2700. That's just a guess. I think the big banks know that everyone is waiting for that mark. Tough call in such a bullish market but it can't go up forever without a correction here and there. GL
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Just for educational purposes. Trading view does not go back to the beginning. So I drew a little picture. Pull up a long term chart and see for yourself. Dow 35,000 to 36,000 before we top. That's my target area. I am looking at the end of 2019.
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Above is the monthly chart zoomed way out Now I will publish the weekly chart of the rally that started in 2009. As you can see, it appears that we had a double 1 , 2. We definatly had a 3 , 4 in 2015. Are we due for a double 3 , 4 before the bubble phase of wave 5. That would be a guess.
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May have to wait a little bit more before a decent pulled back.
Hi SalN, your new updated pic is in chaos, could you be more specific? It looks like to long SP500 till the end of 2019... it's a great thinking ... BTW, your strategy is awesome...
JackyQZ
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Hello SalN, what the TP point of short position? Thanks
SalN
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@JackyQZ, I’m looking at near the 2700 zone. However.... I am wondering if the price might push up to the upper trend line with the passage of the tax bill. It’s tough to short this market
JackyQZ
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@SalN, Ok we will see how is going on after the tax bill...
dondraper
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what is the red line value for RSI ? cant see it clearly
SalN
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@dondraper, divergence line from previous highs. As we go higher the rsi is lower