A day earlier, the Nasdaq powered to another record closing high as tech stocks outperformed. In the current situation we expect the price to crawl towards the 14000.0 psychological level as we still have some bullish momentum left in the tank in order to wipe-out potential sellers. This target may be reached today, when FED Chair Jerome Powell will hold a speech...
The chart is one possible visualization of the confluence of unpredictable high-impact events. For example:
February 24th, 2020 World Health Organization declared the COVID-19 outbreak a pandemic and warned that "much of the global community is not yet ready, in mindset and materially,.." Over the following eleven months over 2 million lives were lost...
Looking at SPX here for further development on the bearish move.
We see the price action had a bullish push up breaking previous highs.
However, price did not continue with continuation corrections, instead we see the bearish move down on the LTF.
This is a good indication that the bullish momentum is exhausted, and we may see the reversal...
Looking at DJI for the bearish reversal in the up coming days/week.
Overall looking at the price action, we see DOW has hit the all time double tops, and price is showing reversal price action on the LTF.
Price had a push up, but failed to continue higher with any bullish correction.
Instead, we see a short bearish push down from that area, and a...
When the world goes lockdown on Wave 2, the US remains in lockdown since March, and guess what, it was a pretty damn good March to November for the US Indices.
Despite losses in major fields, tech companies showed significant growth and revenue, pharmaceutical companies were on the spot as well, and in general despite DXY dropping since then, SPX...
Very important how US indices will close today. All week long we had a non-stop selling , and if today we get the close at the lows (ideally close to support line), I would not be surprised to see strong follow through on Monday as well, even gap lower and limit down maybe.
Prices often continue trending on Mondays in the same direction as Friday close. So given...
U.S S&P 500 Index.
- Retraced from its sideways resistant.
- Broken down below its Mid Term Trend.
- Its next 5 days crucial reversal zone will be important to take note.
- A break down below this zone will also mean breaking down below its Long Term Trend (Red Line) will spark a Bear Market.
- A recovery above this zone and above its Mid Term Trend = Super...
Short term trade idea:
Pattern wise within Nasdaq - Double bottom, measuring it comes to 38.2 Retracement of Fibs which is matches nicely key retracement area.
Above 11270 Area bullish with the resistance areas of: 11480 - 11560 - Target area for double bottom = 11815 - 12000 area.
Below 11085 Area Bears could come in control with key support areas of: 10930...
Price is now consolidating below the key 11000. If we look at Elliott wave analysis, this should be the top. However, this summer showed the exuberance of greed and addition of retail traders like Robinhood, shifted the balance making retail trading almost 25% of all trading in the world. So while I am still advocating for a tech bubble burst, it may come later....
Take a look at the divergence that happened in February 2020. Well that same divergence has happened once again in a similar scale so we can expect a similar type of sell off. Not to mention how overbought the Nasdaq is doing, many will take this as a sign to take their profits.
Pattern: Channel Up on 4H.
Signal: Bullish on every dashed line.
Target: The two Resistance levels 26,790 and 27,640.
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Seems like wave B was finally over, now we are waiting for the continuation lower. Price near a strong 3000 level. Best to wait for more price action and wait for Europe session to open tomorrow as price expected to gap lower on the open and volatility will make it harder to point a good entry.
As Central Banks and financial institutions cut the economic forecast...