The_Unwind

Are You Kidding Me :) ?

SPCFD:SPX   S&P 500 Index
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18
681 18
in my last couple articles here on tradingview.com
I have noted the Bullish Short Term
Trend Reversal in the S+P 500 that occurred on 12/26/18.

However,with the 25 point GAP Down Open,
and a late afternoon fade break/test of 2400 Bullish Support
which I had written was the technical expectation today,
all seemed lost for the bulls.

I myself had relaxed this holiday afternoon with no trading position
simply watching all this unfold with chinese food and tea,
and chatting with some trader buddies here on tradingview.

Tonight, after I awoke from what they nowadays call a power nap
and turned on my computer screen, I was dumbfounded what I saw.
S+P 500 had reversed all of that, in the last 90 minutes of trading
and had actually CLOSED today up nearly 1 % to 2488.

I literally had to do a double take at my computer screen.
Even putting on a pair of cheap reading glasses didn't change what I was seeing.

Yes, it was all very true. S+P 500 had rallied back substantially
in what they are saying is the biggest point comeback in a decade.

Rather than go into any further dumbfounded explanations here,
I will simply note in doing that,
the Bulls have SUCCESSFULLY pulled off a houdini
that perhaps no one would have thought possible,
and kept their bullish reversal hopes alive,
at least for another 24 hours,
and maybe more.....

Are you kidding me :) ?

SPX Last 2488.83

Short Term Trend Remains BULLISH ,
with 2400 Remaining as important Support

THE_UNWIND
12/27/18
NEW YORK


Everyone is talking about it being a bear market. The only reason the S&P is down so much is that it was up so high previously. It is still probably 10-20% overpriced, but isn't it generally that way? On the Monthly chart we were just at the 50 Month average.

It could go lower, but the market doesn't move in straight lines, and the sellers exhausted themselves. It could also be a good ol' short squeeze given all the short sentiment I see on this forum. We will likely retest the lows in a couple of weeks or months and if they hold it could be up for a while.

Honestly, there is not a lot of confidence with Trump in office, so we will likely see more volatility.

Reply
The_Unwind stuartsfleming
@stuartsfleming,

Excellent post here. Your interpretation of current market conditions is spot on. Thank you for sharing your insights.
Reply
Is it a cup & handle pattern breakout??
Reply
The_Unwind sumeetlunia
@sumeetlunia,

One could surmise that. Excellent eyes.
Wait to see if on a potential pullback to 2450,
how the market reacts.
Or smaller position now for a breakout above 2532
Reply
What a move! A corrective wave, or a full new trend? hmmm
Reply
The_Unwind nslconnie
@nslconnie,

If market stays above 2450 it will be bullish.
A breakout above 2532 by Dec.31 doubly bullish.
Reply

Not so crazy. Sketched it last night. Just the ABC components of wave 4. May start up tomorrow (possibly as high as about 2520), but then back down from there for wave 5.
After wave 5 down (of a larger wave 3), then it should get real interesting. How aggressive a move back up do we get (can we get to 2600?) or does the bottom fall out.
Reply
Volume was lower than yesterday. Few shorts that still needed to cover. Back down a bit, then we trade a range
Reply
The reversal happened not from a random place. The technicals are well respected even if the market is rigged
+1 Reply
The_Unwind SviCapital
@SviCapital,

Excellent observation. Money is committing again.
Reply
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