S&P 500 Simply Trend Analysis
It touched twice around 2950, so that the 2900 is now strong resistance line.
RSI and MACD shows bearish divergence now, so it might need some more correction time to get its direction.
Last week, there was strong candle which is compatible with the candle 2 weeks ago, so we need to see that it can break the short downtrend....
Momentum is slowing down as we approach ath and it looks price could reverse soon.
Tech stocks: The FAANG bubble popped. We are at a prime area for return to normal bull run to top.
Expect disapointing earnings fueling a selloff. Even if they are good we selloff anyway probably...
SNPS stock has been moving with intermittent momentum runs and easily broke through the highs resistance from September 2018. It is now slowing down after huge gains. The stock is currently shifting sideways with a rising risk of heavy profit taking from the pro side.
For short term trade:
From the chart, we could spot a double top pattern forming.
If it fell below the 2614 to 2624 level, we could confirm short sell the S&P 500
Disclaimer: This is not a financial/trading advice.
Across the board we have seen several stocks and index's lose important support levels at the end of 2018 after a big run up of 60% over the last 3 years (bottom of wave 4).
For an example here on the SP index: Wave 3 hit just over a 1 to 1 Fibonacci extension before Wave 4 came down in an ABC. Sub wave 3 of the overall 5 then hits a 1.618 Fibonacci extension...
This is just a short-term long position for the SNP, if you are a swing trader then there is a possibility we may bounce in January and continue back down on February.
I am basing this on the fib extension of 1.618 and the .236 Support level. Things could go alot lower as bearish momentum almost always moves faster than bullish momentum when it comes to the SNP...
Its a great example how perfect Fibonacci time and price extensions work together. Price moves after Fibonacci ratios also in time sequence, not only at price levels. Fibonacci time extension work perfect with oscillators like stochastics. Here I used modified Ichimoku settings (doubled ones).
This update contains some minor changes in markup. The initial Idea stays the same. I expect to see new low (but no lower than 9.90) which is needed for wave (((B))) to be completed. If the market crosses up the "critical point" then this scenario will be compromised.
Please do not be confused. This is not pure Elliott Wave Analysis. This analysis is based...
The wave 4, most probably, is not finished yet. This markup confirms my expectations regarding the end of the long-term bull market in US.
Please do not be confused. This is not pure Elliott Wave Analysis. This analysis is based on my fork of Elliot theory. The simplified concept of this fork is published here:...