Recap This week has been a masterclass in what I call “Technical Analysis 101”. The most significant technical event of 2023 occurred on Tuesday, with ES breaking down the uptrend channel connecting the March and May lows. This resulted in a 100+ point multi-day selloff, the deepest since before the March low. However, ES managed to put in a green recovery day on...
Last Week : Last week market went sideways between our Key Resistance and Current Support area which we established on Sunday. Selling seemed very mechanical again because we didn't have size plowing through important levels and continuing, instead we get holds/bounces then continuation which so far has been trapping more new longs on the way down who are...
Recap The bears had their first major technical win since mid-February, breaking the perfect rising trendline from the March lows. This has triggered a "sell the bounce" theme with the bulls struggling to put in green days in August. The question now is whether there is a relief bounce on the horizon. Premarket 🌏 Asia: Down 🌍 Europe: Down 🌎 US Index Futures:...
Apple has really been, perhaps arguably, the key reason the bear market rally has been as extreme as it has in 2023. Looking back to January, there really has not been even a single genuinely bearish day. But with Q2 earnings as a catalyst, we now have signs of a genuine and significant reversal pattern, and at an all time high. It's very evident on monthly...
Recap August 2023 has been a unique month with 12 trading days, 10 of which were red. Tuesday, ES hit its most significant support level, leading to a continued grind down. This triggered shorts Tuesday for a breakdown trade, which finally followed through yesterday afternoon. After 10 of 12 days red, the question is whether the bulls can get a relief bounce and...
THE BURRY CHANNEL: World famous trader Michael Burry went all in on stock market shorts last week! Bullish setups are going to be hard to find until we break out of this channel! *MICHAEL BURRY'S SCION ASSET MANAGEMENT JUST RELEASED ITS LATEST 13F FILING *BURRY BOUGHT PUTS WORTH $900 MILLION DOLLARS AGAINST THE S&P 500 AMEX:SPY *BURRY BOUGHT PUTS WORTH $740...
Greed quickly became extreme at the end of July, and the beginning of August has severely punished bulls, who are still buying the dip and buying the dip. The July high on Nasdaq happened to occur along with the Dow and the SPX in that all three indexes swept out the January '22 pivot that amounted to a rejection that ended that unprecedented bull...
I have an open call on the Nasdaq NQ CME Futures that theorizes that the markets may have topped in terms of the perpetual bull run, but that we may also get a rip back towards/at new highs. Nasdaq NQ - Is It Time To Sell The Rip? The process has been quite slow to play out so far, but the most dangerous thing for bulls with NQ is that 15,000 has not yet...
Today I shared a video in my trading room of Tom Lee on CNBC post his CPI massive rally call which didn't materialize. One member pointed out: " Lol. The man in this interview is not “fearless.” He is having trouble getting it out, and he has concerns. He is impressed by the “pronunciation” of this move. " I share the sentiment chart so we can observe the...
ES has been following the bullish count almost to the dot for the majority of the year so far. Right now ES is on critical trendline and fib support and RSI has several points of bullish divergence. If the trendline breaks, it is still not the end of the world. But, if 4300 level breaks, then it will be very worrisome. Below 4200, the doom and gloomers may be...
Recap As predicted, we saw a push to 4515 major resistance followed by a dip in the ES. This was no surprise as ES remained stuck in a 1.5 week bi-directional range, the largest of its type since May 2023, and December 2022 before that. Late in the day, we finally broke the range down. Premarket 🌏 Asia: Mixed 🌍 Europe: Down 🌎 US Index Futures: Down 🛢 Crude Oil:...
The NYSE:ES Chart shows potential bearish harmonics. Downside targets and SL value are listed on the chart. Trade safe!
Recap July, the second most bullish month of the year, saw three consecutive weeks of growth, rallying 220 points. August started with the first red week in three, followed by a more turbulent descent this week. However, August is traditionally a consolidation month, with a 0.1% average return over the past 20 years. This pattern of a choppy first half and...
I vividly recall a few years back having just finished labeling the above chart of the SP500 from inception. I labeled the chart and included most of the historical events that occurred over the course of that time. As a trader, I wanted to have a quick reference visual picture of price action during war time, innovation, and societal change, juxtaposed on my...
spy is trading in a giant descending correction mostly these break upside from previous patterns but you should know this game by now, high probability trade idea here for next week !!!!
Last Week : Surprisingly last week played out perfectly just had to be a little patient with things, last Sunday we noted that market needed either a strong push over 4615-10 and hold above or consolidate under 4603 before pushing over 4615-10 to possibly continue higher and if not the buyers who are not getting the upside here for weeks will start selling...
Recap Yesterday, CPI delivered as expected with plenty of large, bi-directional swings and traps. Despite this volatility, ES followed the general trade plan well, defending the 4493 support zone and continuing the rally to high 4530s. The market closed right at the 4493-88 level, which has been tested six times since last Friday. Markets Overnight 🌏 Asia:...
Recap The month of August has seen a shift in trading character, with massive bi-directional swings in the ES. The ES made four full round trips from the 4535+ zone down to the 4480-90 zone since Friday alone. On Tuesday, the ES rallied to 4532 then dipped back down to the 4480-90 zone and held. The 4493-88 zone remains the most important area in ES, as it...