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Madrid Wizard

$SPY A new relief rally forming. Double bottom with positive momentum divergence and retest of the 200ma in the weekly. The close on Friday above the 200ma is a good sign. This is a bearish leg, but it could turn into another relief rally to test the resistance of the 50ma. It’s interesting to point out that the size of the bear leg was the same as that in 2020,...

Madrid Wizard

SPY is reaching a technical level where it is starting to form a positive momentum divergence. Let's remember the relief rally which took the price back to the support levels under the Moving Averages, this is usually known as a "back to normal" on an ongoing Bear Market. I don't expect this to actually go to the reach the previous high levels, I expect more of...

Madrid Wizard

Today a letter was released from the Musk parties stating basically they want to go back to Square One. As per my understanding it doesn't say Musk will unconditionally buy Twitter, it basically says they are standing their ground and they're abiding by the original acquisition terms, which back then stated there should be transparency with the "bots" and other...

Madrid Wizard

Bitcoin held its support level at 35K, which allowed this market to try to break the trading range between 35K and 45K to reach levels above 47K. It pierced the 200ma momentarily to go back to its 43K support level where there is a narrow ribbon supporting the price. This is a good signal since this means it is concentrating energy and it could ignite a rally to...

Madrid Wizard

Sound familiar? We have a raising #OIL that has reached levels not seen in over 14 years. Let's remember what happened back then, The oil was booming, the economy was booming, the housing bubble was at its peak. It looked like a grand finale when Oil reached its peak. Just before it went that high the #SPX started to decline, the economy had reached an...

Madrid Wizard

The markets are weighing mainly two events, the geopolitical environment and the interest rates. Sadly the world has witnessed the conflict in Ukraine, a a war that nobody will win, and everybody will lose. The markets always react negatively to bad news, and uncertainty. On December 2021 the SP500 reached an All Time Highs (ATH) as well as the Dow Jones, but...

Madrid Wizard

I'm long in this position until my indicators tell me otherwise. In the Weekly timeframe the price still holds above the 30k - 35k support level. At the time of this publication it is in the 40K, which still holds the support. It has failed to breach the resistance from the Madrid Ribbons in the Weekly, and in the shorter timeframe it simply pierced down the...

Madrid Wizard

Bitcoin has tried to breach the 45K resistance level again, at the time of this publication the closing price was heading down to the 43K level. Still inside the Madrid Ribbons resistance area. Good news is that the 200 MA in the weekly, as well as the 90 MA in the same timeframe are intact. It has tested the 35K-38K support level with success, which are above...

Madrid Wizard

If support at 35K holds we may have another rally. Technicals Weekly Time Frame The weekly tells a story of a correcting downtrend leg that meets the support with the main trend. The downtrend leg is not over yet, it has developed a negative momentum and a sale off. This is the point where the Whales step in and stop it from going below the 35K level. If there...

Madrid Wizard

The outcome after the Earning Call was that it barely made it back to the closing price at the time this article was published. This is a sign of weakness and lack of conviction. The Price structure displays a critical support level at 851, if this is broken to the downside this will follow the rest of the stocks that have done this same pattern lately and a...

Madrid Wizard

Last week se saw a lot of sell activity in the market. I see there's a Support level around 4300, where it will hit a double bottom from the level it reached on the month of October las year. All the sectors in the red, with the exception of Energy, which has been having a rally and it's still in an uptrend unless the indicators say otherwise. Gold is gaining...

Madrid Wizard

Currently we're at a secular resistance level where the prices have reached the top of the uptrend channel. Signaling a painful, but necessary correction. Price Structure. The SPX has had a solid uptrend right after the recovery from 2009, this sets the start of the Bull market, so the 0.0 Fib level. Consequently it sets the the 0.618Fib level at the peak...

Madrid Wizard

Buy When There's Blood in the Street ... After the recent well known events in the financial market and the crypto market I recalled a quote by Baron Rothschild: "Buy when there's blood in the streets, even if the blood is your own." I would say this is very true; however, in the world of trading "Timing is Everything", don't just go blindly with the old saying,...

Madrid Wizard

The so called 40K support was pierced like a hot knife on butter. The hope is that the old support in the 28K-30K holds, else the Head and Shoulders pattern will be a confirmed story. Trend : It has been a downtrend since its peak at 69K, all the way to its current 35K level. It was accelerated on Friday along with the overall financial market. Momentum :...

Madrid Wizard

Some bearish signs have been spotted in the Daily timeframe , which make me think we're at a negative momentum divergence and some provisions have to be taken in case this makes a correction. So far The market has been in a solid uptrend with some trend testing and dip buying. This has been repeated since the major downtrend we had in march 2020 when the...

Madrid Wizard

On March/April 2020 we hit irrational market conditions due to the abrupt halt in the economy. We can blame the pandemic as the trigger, however there were indicators that were already flashing a slow down in the economy. Then "Magically" the so called "V Recovery". Sharp, strong, "back to normal", unemployment spiked to unprecedented levels and went back to a...

Madrid Wizard

When there are new technologies never be the first nor the last to enter. This is the story of a very good company that is way ahead of its time and attracts a lot of investors because of the innovation. However, it's still not a profitable business. The space tourism is in its infancy. Richard Branson is one of the pioneers in this industry, and I'm sure the...

Madrid Wizard

Bitcoin Head and Shoulders After recently peaking at around the 66K level, Bitcoin retracted back to 41K, where it is hitting a critical Support level. If this holds it may reconsider a rally starting here, however the Head and Shoulders pattern looks like a text book H&S, so it could go down as far as 30K where it will test another critical support level. It...