Caution in the Market.
I had posted about the S&P before as it was approaching the previous high at 286.75.
It had been looking weak to me at the time... Now that we have broken that high many people would then be bullish at that point. But seeing the followthrough in the S&P has left much wanting.
We have also seen some erratic behavior from some of the bigger names in the market. This could be seen as a harbinger warning sign.
I erroneously called out bearish divergence before we printed a new high. Which, we have now printed and the divergence remains in the RSI.
The Yello lines outline the ascending wedge pattern that we have remained within since my last post. Yesterday we broke below this pattern and are now testing it as resistance. If we fall from 291.54 then we can assume that the resistance is tested and confirmed and we should see a slow breakdown to 286.77 which was the prior high.
If we get back within this pattern and blow through resistance then the pattern would still be intact. This could produce a little more short-term gains in the S&P. If I had to just throw out a number I would throw out 300 as a potential top, IF we confirm back within the falling wedge pattern. But falling wedge's typically broken to the downside.
Stochastic RSI. On the daily we are in the oversold area which points to some price support in the short term possibly. But much more importantly on the Weekly Stoch RSI we have the opposite. We have been living in the overbought range for an extended period for of time, which tells me that price is storing up negative energy ready to sell at any point in time. The S&P does move much slower than crypto so its hard to tell you when things will be moving but i will also preface that with I do believe that the two markets are quite correlated. If you are in the Stock market and see Bitcoin dump like a truck then I would suggest you get out your longs on the stocks.
I have a few channels that I have outlined from the historical price action. The blue lines and on the bigger channel we have the red lines.
My final confirmation of breakdown is breaking below and closing a daily candle from our past high at 286.97
I had posted about the S&P before as it was approaching the previous high at 286.75.
It had been looking weak to me at the time... Now that we have broken that high many people would then be bullish at that point. But seeing the followthrough in the S&P has left much wanting.
We have also seen some erratic behavior from some of the bigger names in the market. This could be seen as a harbinger warning sign.
I erroneously called out bearish divergence before we printed a new high. Which, we have now printed and the divergence remains in the RSI.
The Yello lines outline the ascending wedge pattern that we have remained within since my last post. Yesterday we broke below this pattern and are now testing it as resistance. If we fall from 291.54 then we can assume that the resistance is tested and confirmed and we should see a slow breakdown to 286.77 which was the prior high.
If we get back within this pattern and blow through resistance then the pattern would still be intact. This could produce a little more short-term gains in the S&P. If I had to just throw out a number I would throw out 300 as a potential top, IF we confirm back within the falling wedge pattern. But falling wedge's typically broken to the downside.
Stochastic RSI. On the daily we are in the oversold area which points to some price support in the short term possibly. But much more importantly on the Weekly Stoch RSI we have the opposite. We have been living in the overbought range for an extended period for of time, which tells me that price is storing up negative energy ready to sell at any point in time. The S&P does move much slower than crypto so its hard to tell you when things will be moving but i will also preface that with I do believe that the two markets are quite correlated. If you are in the Stock market and see Bitcoin dump like a truck then I would suggest you get out your longs on the stocks.
I have a few channels that I have outlined from the historical price action. The blue lines and on the bigger channel we have the red lines.
My final confirmation of breakdown is breaking below and closing a daily candle from our past high at 286.97
