S+P 500 has suffered a dynamic chart breakdown in May 2019,
jut after making an historic price high of 2954on the first day of the month.
The now telling phrase of " sell in May and go away,"
will possibly never find a month to dole out it's message more to investors and traders a like.
So what really is going on here ?
Is the bottom about to fall out ?
Was the break to new all highs so bearishly divergent,
that the market will now simply fall back under its own weight
back to the December 2018 lows of 2350,
in a simple law of physics reaction
Or,as some of the calmest and wisest bull market traders
are telling me, by buying everything they can put their hands on
....Is this simply a very sharp shakeout in prelude
to support an eventual move later this year to S+P 3000 .and beyond
To my eyes, the chart structure of the S+P 500
shows a very clear rollover top from the all time high
reached just 30 days ago, shown here in all its glory.
Whether it gets there next week, or not,
the S+P appears to be targeting the very important March 8,2019 Low at 2722.. next
If that fails to hold ,then potentially look
to a very important Point and Figure "POC Value Area Support"
below that at 2693,courtesy of Mark Rivest @ tradingview.com
for make or break support.
The market reaction in May was just to sell,
and not wait around to find out why later.
Perhaps the Federal Reserve will surprise everyone
but the bond market,and cut interest rates this summer
putting a potential floor on price markdown now, before things get out of hand.
But I wouldn't bet on it.
THE_UNWIND
6/1/19
NEW YORK.
jut after making an historic price high of 2954on the first day of the month.
The now telling phrase of " sell in May and go away,"
will possibly never find a month to dole out it's message more to investors and traders a like.
So what really is going on here ?
Is the bottom about to fall out ?
Was the break to new all highs so bearishly divergent,
that the market will now simply fall back under its own weight
back to the December 2018 lows of 2350,
in a simple law of physics reaction
Or,as some of the calmest and wisest bull market traders
are telling me, by buying everything they can put their hands on
....Is this simply a very sharp shakeout in prelude
to support an eventual move later this year to S+P 3000 .and beyond
To my eyes, the chart structure of the S+P 500
shows a very clear rollover top from the all time high
reached just 30 days ago, shown here in all its glory.
Whether it gets there next week, or not,
the S+P appears to be targeting the very important March 8,2019 Low at 2722.. next
If that fails to hold ,then potentially look
to a very important Point and Figure "POC Value Area Support"
below that at 2693,courtesy of Mark Rivest @ tradingview.com
for make or break support.
The market reaction in May was just to sell,
and not wait around to find out why later.
Perhaps the Federal Reserve will surprise everyone
but the bond market,and cut interest rates this summer
putting a potential floor on price markdown now, before things get out of hand.
But I wouldn't bet on it.
THE_UNWIND
6/1/19
NEW YORK.