S+P 500 has had a Very Powerful Technical Bullish Reversal." changing the Short Term Trend to BULLISH at the Close on 12/26/18.
Technical Qualifications of the "One Day Reversal" is trading lower on the Daily Bar, and then Closing Above the Previous Days High, 12/26 Low at 2346.58 was Lower than 12/24 Low at 2351.11, and 12/26 High/Close was above 2410.34 High from 12/24
TREND ANALYSIS DEFINITION... USED FOR ANALYSIS REFERENCE THIS TABLE, FOR FUTURE DEFINITION OF TREND.
DAILY BARS = SHORT TERM TREND WEEKLY BARS =INTERMEDIATE TREND MONTHLY BARS= LONG TERM TREND
This" Bullish Reversal" rescuing the S+P 500 from the brink,of a bear market now opens up the possibility of something more substantial for the Bulls.
A Weekly "Bullish Reversal" TECHNICAL SIGNIFICANCE trading lower on the week, but then trading and closing higher, would be a MUCH MORE SIGNIFICANT TECHNICAL EVENT should it occur this week.
In order to accomplice that, the S+P 500 would need to CLOSE Above LAST WEEKS HIGH at 2601.13 on 12/28/18
thanks for your chart--- Do you think this rally can be sustained. Many are saying that Selling was done with volume and today pump is done with low volume? what do you think?
Price to me is all that really matters as a trader.
This is a holiday week, so if volume is lighter, that may be the reason why.
But it's really too early to tell.
CodedFlow
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@mhayeea, good question. it may be a systemic squeeze - and in my analysis the short paradigm is intact. Things are flying strange.
tommix
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HAHAHAHA jesus there is really naive noobs who thinks that USA stocks will ever go back? :DD USA is doomed. 2008 will look nice compared to 2019-2020
Certainly a possibility. Thank you for your wise input here.
Spawn777
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@tommix, Bullish move today with the reversal. It appears that the world is fine with deflation and having the central banks being the House that controls all. Crazy but that's the world we live in now i guess
worldwidehappiness
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Nasdaq 100 led the US down. Then it entered a support area. Meanwhile, Crude Oil was sitting right on a large long-term support. The two supports together gave a great trigger (excuse?) for a giant bounce.
Yes. Both rallies came on top of long term support. Good point.
But now both NDX and CLG must now prove that its not just a one day short covering wonder