Well here is my view on
SPX
...
The market was pricing in a rate cut by the FED, but Chair Powell didn’t cave in. So the market started to sell-off and broke the uptrend which started since the beginning of the year. This could be the start of a much severe reversal similar to the one we saw back in October 2018, when the FED also disappointed the market by staying hawkish. The market sentiment can easily be manipulated back to the bulls’ side if the Trump administration strikes a good trade deal with China, or pressures the Fed for an immediate rate cut. But without any government intervention, we could easily revisit the 200 SMA or even the December lows.
As I see it we already made a DT AND Quasimodo pattern on the monthly which you can clearly see and which happened the last time clearly 2007 and we all know what happened after the "retest"...
So EVERYTHING in the economy looks like we are right before the next big crisis but markets can stay irational far longer than we can stay liquid financially, so it could also range for months now or even push higher because of Trmps politics.
Whats most likely to happen that Trump and the FED balance this market until the next election and on the montly we can see a range within this DT and neckline/break.
IF we break even the previous break again it´s over for the economy for the next few years. SO let´s see how we roll.
So for entries: Enter now very very long term or wait for another reversal pattern at least on the Daily timeframe (or H4).
The pattern now is very solid but markets can stay irrational far longer, so let´s see.
Those red levels are possible optimistic targets where price should go if we break through everything.
So this means the economy could easily break down by 30% or even up to 50-80%. Everything is possible but always remember, that´s a global event then and the FED and others will do their best paired with politics to time this thing right... so does Trump.
Cheers
SPX
... The market was pricing in a rate cut by the FED, but Chair Powell didn’t cave in. So the market started to sell-off and broke the uptrend which started since the beginning of the year. This could be the start of a much severe reversal similar to the one we saw back in October 2018, when the FED also disappointed the market by staying hawkish. The market sentiment can easily be manipulated back to the bulls’ side if the Trump administration strikes a good trade deal with China, or pressures the Fed for an immediate rate cut. But without any government intervention, we could easily revisit the 200 SMA or even the December lows.
As I see it we already made a DT AND Quasimodo pattern on the monthly which you can clearly see and which happened the last time clearly 2007 and we all know what happened after the "retest"...
So EVERYTHING in the economy looks like we are right before the next big crisis but markets can stay irational far longer than we can stay liquid financially, so it could also range for months now or even push higher because of Trmps politics.
Whats most likely to happen that Trump and the FED balance this market until the next election and on the montly we can see a range within this DT and neckline/break.
IF we break even the previous break again it´s over for the economy for the next few years. SO let´s see how we roll.
So for entries: Enter now very very long term or wait for another reversal pattern at least on the Daily timeframe (or H4).
The pattern now is very solid but markets can stay irrational far longer, so let´s see.
Those red levels are possible optimistic targets where price should go if we break through everything.
So this means the economy could easily break down by 30% or even up to 50-80%. Everything is possible but always remember, that´s a global event then and the FED and others will do their best paired with politics to time this thing right... so does Trump.
Cheers