ChartArt
Short

Outrageously fatally complacency

FX:SPX500   S&P 500 index of US listed shares
1065 4 19
11 months ago
The "S&P 500" bear market seek & destroy short squeeze rally is nearing its end. We are very soon running out of fools buying the top. I see at least a decline back to 2000 points and a fast crash back to 1925 is also in the cards. The momentum of the rally is running out of steam (as shown by the "KST" indicator which measures the rate-of-change). Currently the "S&P 500" is at 2106 points after Draghi's ECB announcement that interest rates in the EU are kept a zero.

Market leaders show increasing risk
Other bearish warning signals: "Apple" is usually a leader of the market and currently the stock is falling since several days. The Chinese stock market index SSE             is also dropping since a couple of days. Both of these were so far leading as long as I observe them since Winter 2015.

Short entry: 2100
Stop loss: 2117
1. Target: 2000
2. Target: 1960
3. Target: 1925
11 months ago
Comment: It's FOMC day ahead of the FED decision. The short from 2100 is doing well so far. The S&P 500 also dropped since the KST crossed bearish. Now it's up to the market how low we go after the FED release.

snapshot


Apple earnings yesterday disappointed with many saying this earnings release marks the peak of the iPhone. WTI oil rallied up to a peak of $45.15 today, but then sharply dropped lower to $43.75. In my view WTI is going to fall lower which would be bearish for oil companies and also drag the S&P 500 lower together with Apple.
10 months ago
Comment: Update 15 days later:

snapshot


The S&P 500 is following so far exactly my forecast. Moving along the bearish downtrend arrow I had drawn. Question is if the downtrend reverses next week with a dead cat bounce (as I had predicted on my chart above and also in my original idea a month ago https://www.tradingview.com/chart/SPX500/gMFGEdln-S-P-500-winning-streak-at-jeopardy-ahead-of-April-Fed-meeting/),


or if the downtrend accelerates in the next weeks - which is my older idea from 23 days ago, which you can find here:

Negative Bank and Oil news surprises will drive Wall Street down
10 months ago
Comment: Ok, the potential bounce I drew in 19 days ago just happened after all. I wasn't sure enough yesterday (Monday) with the start of the bounce appearing so weak. But today the bounce made up for the weakness of yesterday and fully confirmed that the overall chart trend projection from 19 days ago is still valid:

snapshot
10 months ago
Comment: I released a new bearish chart yesterday now that the S&P 500 is approaching the second sell wave this week:

S&P 500 downtrend accelerates in May





Meanwhile I came across several interesting news articles:


Goldman Sachs loses faith in stocks, downgrades global equities to neutral from overweight over a 12-month horizon
http://www.marketwatch.com/story/goldman-sachs-loses-faith-in-stocks-and-warms-up-to-oil-2016-05-18
http://finance.yahoo.com/news/goldman-sachs-downgrades-equities-stocks-neutral-104535736.html


Milton Berg: We're at the Cusp of a 30-Year Bear Market
http://www.bloomberg.com/news/videos/2016-05-11/milton-berg-we-re-at-the-cusp-of-a-30-year-bear-market
Qiuness
11 months ago
already short off 2090!
+1 Reply
MrNeutral PRO
11 months ago
I agree with you but I feel that everytime there is a slight dip, we have a large number of Bears "double down" causing Market Makers pressure to hedge and thus pushing prices back up. Just a theory but I for one would be happy to ease out of my bearish positions and take a breather.
Reply
prisma
10 months ago
very good call!
Reply
saba
10 months ago
great timing!
Reply
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