(Scroll Down for Better Picture of Wave Count)
SPX and 3x leveraged bear crude DRIP. Does this pattern show smart money exits in Jan '20 and June '20? When the relationship decreases, lean CAUTIOUSLY on equities and crude. Precipitous fall means lay on the Shorts. Despite Markets going higher in February, the relationship still decreased as crude continued to fall despite an equity climb higher ie DRIP rose faster and stronger (sustainably) than the concurrent rise in the SPX. Then SPX finally capitulated. Fast forward to June 8th: recoveries in the SPX and Crude both took place in the months prior, however since then, the relationship has failed to breach that local high, despite ATH in the SPX printed in August this past week. What is this showing? Crude has lagged and been stagnant, stymieing further advancement in the relationship. The blend reversed off of the trend line of resistance. Will this rejection have follow through? In order for the decrease to accelerate, Crude would actually have to roll over, which might lead the SPX on the downside. The pattern is interesting and looks to fit as long as another fall occurs and avoids a breakage of the June 8th high. The next downturn may produce another low (Y) that rivals or exceeds (W). However, within the count, the Z cannot be lower than the deeper retracement of W or Y. Regardless, that could be a major tradeable LOW Buy point but more choppiness would follow until Z concludes.
SPX and 3x leveraged bear crude DRIP. Does this pattern show smart money exits in Jan '20 and June '20? When the relationship decreases, lean CAUTIOUSLY on equities and crude. Precipitous fall means lay on the Shorts. Despite Markets going higher in February, the relationship still decreased as crude continued to fall despite an equity climb higher ie DRIP rose faster and stronger (sustainably) than the concurrent rise in the SPX. Then SPX finally capitulated. Fast forward to June 8th: recoveries in the SPX and Crude both took place in the months prior, however since then, the relationship has failed to breach that local high, despite ATH in the SPX printed in August this past week. What is this showing? Crude has lagged and been stagnant, stymieing further advancement in the relationship. The blend reversed off of the trend line of resistance. Will this rejection have follow through? In order for the decrease to accelerate, Crude would actually have to roll over, which might lead the SPX on the downside. The pattern is interesting and looks to fit as long as another fall occurs and avoids a breakage of the June 8th high. The next downturn may produce another low (Y) that rivals or exceeds (W). However, within the count, the Z cannot be lower than the deeper retracement of W or Y. Regardless, that could be a major tradeable LOW Buy point but more choppiness would follow until Z concludes.
Comment:
The whole chart got screwed up because of the split. Will have to amend this.
Comment:
Still looking good, multiply by 10 to get real time chart perspective (because of split)
Comment:
This has played out well in the buy/sell equity department