I am calling a top in the S&P 500 and the charts pretty much speak for themselves. What is most important to me is the death cross with the 50 & 200 day MA’s along with the 200 flattening out after a multi year trend.
I am also viewing the current range as a Wyckoff Distribution pattern. From here I would expect a breakdown of the ice line or one last dead cat bounce to retest the middle of the trading range at $2,700 - $2,725. The 50 day MA also happens to be waiting in that area and if that does get retested then it would provide a high probability short sale entry. Same goes if we get a daily close below the ice line.
When we zoom out to the weekly the picture does not get any prettier, in fact it provides very important confirmation.
We broke down the 3 year bull and promptly turned it into resistance. The 22 week MA has rolled down, with the price below it, for the first time since the last presidential election. This week also just closed a candle.
According to Thomas Bulkowski:
“the serves as a reversal in 79% of the 20,000 examples that I studied.”(1)
I have been fully out of my S&P longs for over a month and now I’m fully entered into shorts. That is due to the price closeing below the 4, 9, 50 & 200 MA’s on the daily combined with a death cross with the 50 & 200 along with a crossover with the 3 & 9 MA’s. This is confirmed with the weekly closing below the 4, 8 & 22 MA’s with crossovers across the board.
If you would like to learn how to use moving averages more effectively then I would strongly recommend subscribing to Tyler Jenks Hyperwave youtube channel and starting with the following video.
"H&S top patterns with abbreviated right shoulders can be more powerful than a balanced shoulder structure."
"I love abbreviated right shoulder trades." -Peter Brandt