If you believe that technical analysis has any prediction power at all (I highly doubt that it has in any other environment than highly speculative ones due to self-fulfilling prophecy)
and you are net long the S&P500, then you might want to rethink.
- Very soon (possibly) testing broken trendline from march 2020
- Massive divergence on volume since...
Expecting a Y leg downwards within a WXY complex correction structure. This will create around a 6-8% drop in the S&P500 over the next month or so. The drop will likely take the form of a three-legged correction (internal WXY subdivision) which will end with a large acceleration downwards.
Most likely we need to fill this gap before we go back up. Market doesn't like excess anything or gaps for the most part. Algo's are a menace but they are like an ADHD Wifey - They don't like small messes ruining their clean houses.
Seems like a bear pennant is forming.
Further market direction depends on the side that we break out of.
I am sour so i want to see a solid move down from these levels.
However, very aggressive buying is going on today.
Loaded SQQQ, SPXS, UVXY, SDOW and a some puts. Either getting paid or getting my ass handed to me.
Monthly candles show just how much meat is on the bone for bears. RSI is just now exiting overbought territory, IV rank/percentile is making a move upward, MACD is quickly losing momentum, and US10Y yield is going to go skyward next year which is unquestionably going to shake out some big players. Based on support dating back to the 2008 CDO bubble and ensuing...
Price has bounced off a demand zone after todays drop. Price is looking to rally up to fill the imbalances that were left behind from the morning drop to grab more liquidity and test supply zone before taking price further down.
If price fails to break and hold above $433, sellers will look to take price down to $4234.00 by end of week where there is a naked POC...
Would be nice to get a drop to 410-420 for a nice buy the dip opportunity into the year end
365 would definitely be a gift.
180 in 2023? Jk (not)
We will see what Powell and Yellowstein has in store for us.
There are a million reasons to be bullish and a million reasons to be bearish. You pick the side you want to be on. I am 60/40 but may change my mind in...
In this weekly analysis, I noticed a similarity in the market correction of the 2nd and 3rd week of May 2021 to the current environment.
As we can see from the chart, in May, the market first dropped below the support level of an ascending channel which then transformed itself into a resistance level. In the following weeks the index traded in the ascending...
🚨We are nearing a Dow-Sell-Signal acc. to the new Dow-Theory🚨
We had a drop of more than 3% S&P and Dow which is causing a secondary reaction. If the S&P stays below $4400 the secondary reaction is confirmed.
This is the FIRST step acc. to the Dow-Theory system by Jack Schannep!
The economy is still in a major post-pandemic depression and many S&P500 companies...