My my. The entire 2019 rally in the S+P 500, it's main premise as it turns out now looking back, was to make a slightly higher all time high, 2954 this year, collecting enough bearish divergences along the way to keep every one in the game and honest.
Then in all fall swoop, it all came undone.
They even gave you almost the biggest fundamental news item why it occurred. China. Blame the Chinese for standing up for their sovereign rights against the United States, and now suddenly, the world, becomes awash in a new multi trillion dollar trade war, with no apparent winners. Just like that. Everything seems to have changed.
Truth is much narrower in scope then that however.
The market was simply way ahead of itself technically in price, in the grip of multiple quantified bearish divergences as prices rose to new all time highs.
Big money has been selling into almost the entire 2019 price rally, as big block trades on the NYSE clearly reveal. Companies buying their own stock, and massive short covering providing the additional continual boost needed to bump the average to new highs
Now that the bubble has burst once again, traders are looking around at each other wondering.. what will happen next ? Is there going to be another sharp leg down from 2800 support, from which we bounced up from today ?
The ViX rising back above 20 today seems to suggest that fear is once again front and center.
A gifted market observer, over the weekend presented me with a Point and Figure Chart, that suggests that the S+P 500 is headed down to 2720 Critical Pattern Support, before this current market correction is completed.
truth has been seen... confirmation found here: Truth is much narrower in scope then that however. 1000% true words. the details though are too bloody though...
JakubKonieczny
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I got 2720 target too as 1.414 extension assuming this current wave down stops by 2790.
I do not have the ability to reproduce it here on tradingview.com
Trust me when I tell you,
it makes a compelling case for line in the sand support at 2720,..or else.
Thank you for the compliment's They're much appreciated :)