SP500 - READY FOR NEW ALL-TIME HIGH? PART 1
Just as the title suggest this is part 1 of a 2-part chart analysis concerning the SP500. I will post the 2nd part shortly after so make sure you have a look at that as well.
The story behind the charts is:
I was testing out a risk management strategy and had gone back to the 16th of January when I noticed something. Originally I was looking at the 5m chart when all of a sudden it was as if I was looking at back at the exact same correction as on the 1st of October when the SP500 plummeted by more than 20% after reaching its all time high and briefly entering bear-market territory.
I then proceeded to place the 2 charts side-by-side and the similarities between the 2, one of which is the 10-minute and the other one the 1W are extraordinary.
By looking back at the 10 minute chart we can clearly see how the price simply sky-rocketed after the correction was over breaking above the "high" of the consolidation phase. Therefore looking ahead only one scenario comes to mind, that one of potentially seeing the SP500 reaching new all-time highs.
Taking into consideration how the 2 other major US Indices (DOW30 & NQ100) are also correlated we could expect those 2 to break into new all-time highs as well.
*Disclaimer*
Past performance is not indicative of future results. This post is to be taken in an educational manner and does not constitute any form of investment advice*
The story behind the charts is:
I was testing out a risk management strategy and had gone back to the 16th of January when I noticed something. Originally I was looking at the 5m chart when all of a sudden it was as if I was looking at back at the exact same correction as on the 1st of October when the SP500 plummeted by more than 20% after reaching its all time high and briefly entering bear-market territory.
I then proceeded to place the 2 charts side-by-side and the similarities between the 2, one of which is the 10-minute and the other one the 1W are extraordinary.
By looking back at the 10 minute chart we can clearly see how the price simply sky-rocketed after the correction was over breaking above the "high" of the consolidation phase. Therefore looking ahead only one scenario comes to mind, that one of potentially seeing the SP500 reaching new all-time highs.
Taking into consideration how the 2 other major US Indices (DOW30 & NQ100) are also correlated we could expect those 2 to break into new all-time highs as well.
*Disclaimer*
Past performance is not indicative of future results. This post is to be taken in an educational manner and does not constitute any form of investment advice*
it's also below in the related ideas section