So far the expanded flat scenario has played out beautifully. From a larger TF perspective the risk/reward here definitely still favors the sell side. The current "rally" is running out of steam on momentum indicators and we are currently near the 21DEMA (which looks like it's about to death cross the 50DMA) where the 2nd leg of a typically correction begins. We...
1. Rsi Divergence
2. On wave 5 (3000,3200, 3450 possible extensions)- 2.62 very veeeery unlikely
3. Watch out on Macroeconomic factors + trade negotiations(china+ EU+ US factors)
4. Last presidential election 2016, market started going down for the period: July 2015-February 2016=> Expecting Market volatility increase starting the summer of 2019- Ending Spring...
We've bounced off the long-term bull trend support twice in the overnight session and today, the Friday of a very ominous weekly candle, will be a very important day for the market.
If we break through, expect a march back down to 278-282. If we stay above it, expect some waffling in the 288-294 zone anyways -- fear is back.
Take a look at the symmetry of the current corrective expanding triangle wave we've been in since Jan '18. It may not look it, but the channel we've been in for the entire year has been steeper than the late 2017 parabolic melt-up. (Looks the same here due to log scaling)
Only 2 outcomes here in my opinion (well... 2.5): The market will either go on a rampage and...
SPX has reached the reversal zone of an expanded flat corrective wave pattern. The book says wave B of an expanded flat reverses at 1.236, but I would n't be surprised to see futures pump it to the 1.272 extension at 3020 which taps the trendline from the jan 18 and oct 18 tops on Monday. For a preview, take a look at AMZN's chart... it hit a wall at the 1.236 on...
welcome to another free signal!
Important: wait for the market to retest the horizontal resistance and sell if rejection!
Target 1: 2901,4
Target 2: 2896,7
Target 3: 2892,3
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The numbers have spoken!
From the bottom to the top.
As above so below...
We are in the "end stage" of the 5th final wave from the 2009 recession bottom. A 10 year bull market, classic.
The quesion is: Do we end at 3033,33 or 3666,66?
After this follows a classic ABCDE or ABC correction wave.
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S&P500 have steady riding for the last few years.
But now it has everything to make it POP!
1) Bonds yield going negative
2) Massive bearish divergence on Big time frame
3) Fed Rate cut
4) Few big companies starting to collapse
5) Ton of Debt!!!
In the final extended hours of trading on Friday the price action moved from 2973 down to 2967. While this may seem insignificant to many, this was technically damaging for many reasons:
1) Neckline broke on a H&S pattern that implies a move below the previous ATH level of 2960 (shown as dashed purple line)
2) The VIX broke out and closed above its current...
The rally from the 09' lows looks like a giant corrective wave fueled by QE. We live in interesting times. There will be a huge crash coming up imo causing massive deflation. If you think everything is expensive what a few more years.