I have noted the 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 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 reversal hopes alive,
at least for another 24 hours,
and maybe more.....
Are you kidding me :) ?
SPX Last 2488.83
Short Term Trend Remains ,
with 2400 Remaining as important Support
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.
Excellent post here. Your interpretation of current market conditions is spot on. Thank you for sharing your insights.
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
If market stays above 2450 it will be bullish.
A breakout above 2532 by Dec.31 doubly bullish.
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.
Excellent observation. Money is committing again.