My last trading view post " A Long Way Down" written this past weekend "2/23/20
defined clearly that a very sharp decline was imminent in the market
Well as fate would have it, the SPX opened at 3257 on Monday
and that has been followed by a massive decline this week
that shows no sign of abating, hitting SPX 3117 yesterday.
The price area between SPX 3393 ,the all time high and 3250, the prior Major Support Area
measuring 143 points,...has now been turned into a
" Blow Off Distribution Top"
of massive technical importance.
Simply put,that area of the price chart now has been "separated from the rest",
like a remote island , a key point to grasp.
and now to be considered formidavle overhead resistance, on any future rallies.
The goose as they say has been cooked.
The potential for further market declines at this point, cannot be remotely discounted.
For my two cents, I would really avoid" listening" too much to those who think it is a "great time to buy stocks now.
They are, for the large part in acute "denial", over a market decline that has blindsided them completely.
You see them on television every day. That's why I refuse to watch , or listen to anything they have to say.
However,there is a catch.
There may be a very sharp snapback rally, obviously when no one expects it,
to further broaden the top already in place.
However it will come from a chart level in the S+P 500,
that was unimaginable to most, just a week ago at all time highs.
I guess if you liked "XYZ stock, and bought it at 100
...you gotta love it at 80 .
Right ?
THE_UNWIND
2/26/20
NEW YORK
defined clearly that a very sharp decline was imminent in the market
Well as fate would have it, the SPX opened at 3257 on Monday
and that has been followed by a massive decline this week
that shows no sign of abating, hitting SPX 3117 yesterday.
The price area between SPX 3393 ,the all time high and 3250, the prior Major Support Area
measuring 143 points,...has now been turned into a
" Blow Off Distribution Top"
of massive technical importance.
Simply put,that area of the price chart now has been "separated from the rest",
like a remote island , a key point to grasp.
and now to be considered formidavle overhead resistance, on any future rallies.
The goose as they say has been cooked.
The potential for further market declines at this point, cannot be remotely discounted.
For my two cents, I would really avoid" listening" too much to those who think it is a "great time to buy stocks now.
They are, for the large part in acute "denial", over a market decline that has blindsided them completely.
You see them on television every day. That's why I refuse to watch , or listen to anything they have to say.
However,there is a catch.
There may be a very sharp snapback rally, obviously when no one expects it,
to further broaden the top already in place.
However it will come from a chart level in the S+P 500,
that was unimaginable to most, just a week ago at all time highs.
I guess if you liked "XYZ stock, and bought it at 100
...you gotta love it at 80 .
Right ?
THE_UNWIND
2/26/20
NEW YORK