My prior SPX post noted that a bottom could have been made on either 8/10/18 or 8/13/18. The decline lasted a little longer and has not reached the primary price target, but the evidence of a bottom today is stronger than what I noted in the last post. Today the PC ratio reached the highest level since the early February bottom. Additionally the 30 minute RSI has a significant bullish divergence.
The original price target for a bottom was SPX 2790-2791. Today the low was at SPX 2802.49 very close to the top made on 3/18/18 at 2801.90. The New Moon made on 8/11/18 was not a factor because todays bottom is outside a reasonable leeway for the lunar cycle. I use a leeway of plus or minus two trading days from a new/full moon.
There is a very high probability an important short term bottom was made on 8/15/18, the next rally has a very good chance of at least reaching the low 2900 area.
hi, any updates ? what is pc ratio indicator ? thank you
markrivest
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@DaxiDriver,
Hi
The PC ratio for stocks give the best signals when it gets near the high end of thier range. A high PC ratio is usually like fuel for future rallies. Based on the last signal I posted, the SPX could go 60 to 80 points above its recent high. The PC ratio is usually not very effectiive in catching precise stock market tops. It will indicate a general area. Sometime that area is wide. I will have a post, probably about the Nasdaq on the weekend.
Mark
PS I'm not sure if your asking for a definition of the PC ratio. If so it measures Puts and Calls options. A high P/C ratio means more Put buyers and extreme readings usually mean a bottom.
Mark
DaxiDriver
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@markrivest, thank you sir ... put call ratio .... nice ...
maksoy
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Hi Sir.
Will you update SP ew count?
Thank you for your interest.
This could be the rally that sets the final" Bull Trap", before a large decline.
Sentiment suggests a snap back rally. Perhaps a sharp one. RSI Readings will illuminate the quality of the rally.
Yet 2840- 2860 is formidable resistance above, where institutions will be looking to unload in size.
And the Emerging Market Debacle is... far from over.