S+P 500 appears to be constructing a Bearish ROUNDED TOP Pattern, as this weeks aborted rally attempts to 2685, have created what looks to me as a CIRCULAR DOME Please Note: Same Circular Dome Pattern is also shown on RSI, as a Confirming Indicator
Quantified Distance : From this weeks high of SPX 2685, to this weeks Low of SPX 2583, measured distance of the move equals 102 points. Thus, if my pattern assumption proves correct, the minimum initial target for this pattern is a retest of this weeks Low at 2583.
Please Note:
Should 2583 fail to support this pattern, then an almost certain retest of the 2018 Low at 2532 would follow next.. possibly timed around next weeks Major Fed Policy Meeting on Interest Rates on Dec.19,2018
SPX Last 2650.54
THE_UNWIND 12/13/18 1150 PM NEW YORK
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This morning low at 2621, is the 4th time that price area has been targeted,and successfully tested. There is substantial Cash and Futures Support at that level.
When buying pressure like that comes in, it is important to immediately recognize it's presence.
Until/If 2621 is broken decisively to the downside, I suggest cashing in on SHORT profits in the last 24 hours
I personally just did the same, from an SPXS purchase on 12/13 at S+P 2670 RESISTANCE. Profit was 50 S+P Points, in less than 24 hours of risk. Know your major Support and Resistance Numbers !
I shall immediately re- SHORT Decisive Break of S+P 2620, for the balance of the day, into the Close.
SPX Last 2633.12
Please Note: These observations are based on my chart readings that I keep. Advise given here should not be construed as trading advise. Thank you.
THE_UNWIND 12/14/18 10 AM NEW YORK
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S+P Has Broken Major Support at 2620. Quite a Bearish Event, make no mistake. Selling had to be substantial to break that level of support, as I indicated in my last update. Rounded Top Breakdown in full momentum now
SHORT AGAIN @ 2620 Using 2633.82 Today's High as a Short Position STOP SPX Last 2609.57
THE_UNWIND 12/14/18 1215PM NEW YORK
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If you read my most from just 4 days ago, I suggested a break of S+P 2620, would get you 2585 and if that support was broken, a targeted move down to 2532, 2018 Low would occur next, possibly this week.
Market coiling up for a huge move very soon. I hope you're wrong for the economies sake but there may be no avoiding it any longer... First the market then the debt bubble and I'm not sure anyone knows how it plays out after that... Could be once in a century type economic shifts soon
Thank you, rox.
Excellent observation.
Margin forced liquidation was a strong catalyst for the Oct.decline.
Obviously as prices continue to drop..same process repeats itself.
David_Scott
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For further confirmation it looks like we are printing a BEARISH THREE INSIDE DOWN candle stick pattern on ES1! daily. Will check to confirm it printed in the morning but right now it looks like it will.
NQ1! is now printing a BEARISH two crows candlestick pattern...again...awaiting the candle to finish but doesn't look good. RTY! looks like death. RTY! if it prints like this on the weekly will complete a BEARISH THREE OUTSIDE DOWN pattern. Interestingly..it's also printing a BEARISH THREE OUTSIDE DOWN on the daily. Fascinating. For further confirmation...the 5 MA as well as the bottom of the consolidation pattern for RTY! have both become heavy resistance. RSI, MACD, RSX all turning over in your bearish rounded top formation on the daily charts. Does not look like a reversal pattern to me...looks like consolidation before another shake out drop.
David_Scott
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@Dedeburn, on RUT...we made a new 2018 low...we got a bounce that has since been aggressively sold...and now we're approaching a second low of the year for RUT. Perhaps a much more aggressive low...as bulls like me...start losing hope...and capitulate into the end of the year. Guess we shall see. Doesn't look good though.
Confirming Bearish Evidence. Thank you.
Important illumination......... RSI, MACD, RSX Momentum Turnover !
Excellent.
This is what I expect from you, my man
Stay focused.
Big things, very big things coming next week,
and at the end of the year.