Is WallStreet Manufacturing an Exit or Accumulating?
Distribution or Accumulation? - Is WallStreet Manufacturing an Exit or Hoarding for the Long Term?
Exciting, impulsive market moves are followed by frustrating, distributive markets. Boring markets are then followed by exciting markets!!
This is how charts move. Impulsive and corrective moves represent buyer sentiment. Corrections in the opposite direction of the broader impulse are used as zones of accumulation to spur the next impulsive move. Or a zone of distribution leading to a reversal.
From March 2020 to Dec 2021 SPY moved impulsively upward. Now it is apparent that we are entering a corrective zone. This corrective move can be a distributive, topping pattern or an accumulative, continuation correction pattern. When distribution occurs, a bull trap ensues. Bulls will be burned if they play a distributive, topping pattern as an accumulative, continuation correction pattern. A "Buy the Dip" type event can turn into a "Hold the Bag" type event pretty quickly due, to Smart Money manufacturing an exit for themselves. If these big institutions do see severe market risk ahead, they will raise asset prices off a bottom to lure in retail traders. Pass the bag off, book their profits and drop the ball.
Heavy uncertainty shrouds the market. Many narratives have been thrown into the fray. Strong consumer, healthy housing market, tight labor market vs. Inflation, Russia-Ukraine, Hawkish Fed, Slowing Economic Growth. SPY should show signs of consolidating. SPY is at the same level it was back in Sep 2021......
dont chase, be patient.
for time, is the great destroyer of all worlds.
Exciting, impulsive market moves are followed by frustrating, distributive markets. Boring markets are then followed by exciting markets!!
This is how charts move. Impulsive and corrective moves represent buyer sentiment. Corrections in the opposite direction of the broader impulse are used as zones of accumulation to spur the next impulsive move. Or a zone of distribution leading to a reversal.
From March 2020 to Dec 2021 SPY moved impulsively upward. Now it is apparent that we are entering a corrective zone. This corrective move can be a distributive, topping pattern or an accumulative, continuation correction pattern. When distribution occurs, a bull trap ensues. Bulls will be burned if they play a distributive, topping pattern as an accumulative, continuation correction pattern. A "Buy the Dip" type event can turn into a "Hold the Bag" type event pretty quickly due, to Smart Money manufacturing an exit for themselves. If these big institutions do see severe market risk ahead, they will raise asset prices off a bottom to lure in retail traders. Pass the bag off, book their profits and drop the ball.
Heavy uncertainty shrouds the market. Many narratives have been thrown into the fray. Strong consumer, healthy housing market, tight labor market vs. Inflation, Russia-Ukraine, Hawkish Fed, Slowing Economic Growth. SPY should show signs of consolidating. SPY is at the same level it was back in Sep 2021......
dont chase, be patient.
for time, is the great destroyer of all worlds.
Comment:
Example 1:
Comment:
Example 2:
