My biggest concern with the coronavirus is the hit to the economy that we are likely going to see. Traders know this which is why we just saw the fastest and steepest drop in stock market history recently, even greater than that witnessed during the 2000 tech bubble crash and even during the 2008 global financial crisis that most of us remember well enough to...
A look at the S&P 500 hourly chart shows numerous gaps created and filled, with most rejected, as price made a series of new lows at the open of each new trading day. Nearly every gap so far has been filled followed promptly by more selling. Friday’s record 10% move up on the state of emergency declaration saw price stop right at the most recent gap-fill level...
The daily S&P 500 chart shows price in a steep downtrend with price on Friday closing just above the 23.6% Fibonacci level on the state of emergency declaration. Until price moves back above the downtrend line, and retraces at least 50% of the recent loss, the trend in price will remain negative. Once/if the 50% level is beat, price needs to rise above the 61.8%...
The S&P 500 bounced nearly 10% off of the long-term support trendline pointed out in the previous S&P 500 chart shared, mostly in the last 15 minutes of trading on Friday, as President Trump declared a state of emergency going into the market close. This indicates that technical traders are still viewing this 11-year trendline as a price support level and is...
#spx #sp500 - The Federal Reserve's $1.5 trillion REPO bailout occurs just as prices test the longterm bull market trendline support level.
#spx #sp500 – Stocks closed down significantly again today which was expected in last night’s chart update after yesterday’s dud of an update from the coronavirus taskforce briefing. As long as traders remain uncertain as to whether or not to buy the dip due to lack of information on both the administrations plans for containing the coronavirus as well as how...
At tonight's coronavirus task force briefing - which failed to provide any details on the proposed economic relief that we were told we'd learn more about today - a reporter asked Larry Kudlow how the administration plans to pay for the proposed $1.7 TRILLION payroll tax suspension which is supposed to help fight a slowdown in economic activity due to the...
#sp500 #spx #sp1! – The S&P 500 tagged the 61.8% Fibonacci level(December 2018-February 2020) on yesterday’s record market drop which was the expected target level in my previous chart and has now bounced back above the 50% fib level in the overnight futures session. The bounce comes after President Trump announced a proposed payroll tax cut yesterday, as well...
#CGC #canopygrowthcorp – Canopy closed last week just above a support level(blue line) that stems back to the price peak of $14.39 seen in November 2016. The most recent test of this level prior to Friday’s close was in November of 2019 which came after CGC lost -73% from a high of $52.74 in April 2019. Price bounced 80% off of support in November 2019 to a high...
#sp500 #spx #sp1! – S&P500 futures have once again gapped down as markets reopened for trading tonight, currently down -137 points for a -4.6% loss. Price is now below the 50% Fibonacci retracement level which is the midpoint between the low seen in October 2018 and the high made in February 2020. 50% retracements after a large/long uptrend are generally...
#oil #cl1! – Oil saw a gap down tonight to the target area shown in my previous chart shared this morning, and for now is attempting to hold at the lower parallel channel line that I drew which was an anticipated support level based on recent price trend. Price opened at $32.87 which is a -20.37% decline from Friday’s closing price of $41.28. Still very early...
Oil fell to a 4-year low as Saudi Arabia launched a price war on Saturday with the announcement of plans to increase oil output next month, looking to boost total output above 10 million barrels a day. This will be the largest reduction seen in oil price for foreign markets in 20 years. www.bloomberg.com This comes as China, the #1 importer of foreign oil,...
The weekly S&P 500 chart shows a pattern that is similar to one seen in October of 2018 just before price lost -15% after a trendline break. Both instances saw price rising with bullish momentum-indicated by green price candles-and then a break of their uptrend support line. Both broke their uptrend support line with a significant weekly decline where price lost...
The S&P 500 daily chart shows price failing to make a move above the 50% Fibonacci retracement level after two tests, and rejections off of, the 50% fib this week(yellow box). This past week saw drastic whipsawing of price up and down within the lower half of the total Fibonacci retracement range which was expected going into the trading week. Friday’s candle...
#gold #gc1! – Gold has been trading in the upper end of its three-day range after selling off last week with other global markets, and the reversing back to the upside this week. Candle 1 shows the selloff back down to $1,560 last week. Candle 2 is a long-legged doji, or sign of indecisiveness in traders as they pushed price higher and lower during the course...
#btc #bitcoin #crypto – Bitcoin has held above a previous support level(white line) and is now pushing up to new local highs, currently trading at its highest level since 26 February. Price is now back above $9k and will likely make a push up toward the solid red resistance line. A move and close above the resistance line would indicate that traders are once...
#sp500 #spx – S&P 500 futures are retreating as price has now found resistance at the 50% Fibonacci retracement level for the past three days highlighted by the yellow box. Price is currently testing the 38.2% fib ahead of the market open. On Tuesday I was expecting some whipsawing in price this week as traders attempt to decipher the emergency rate cut by the...
#sp500 #sp1! - Traders tagged the 50% fibonacci retracement level(yellow box) yesterday on the initial news of the rate cut by the Federal Reserve, and then promptly sold prices into the red closing just above the 23.6% fib level. This occurred even with the Fed once again intervening in overnight lending operations(REPO) on Monday night with $100 billion and a...