Nasdaq, S&P 500, Dow Jones, approaching respectively 15,000 4,400 and 35,000
Triple max approaching for S&P 500 and Dow Jones, already in place for Nasdaq.
Bearish Divergences on CCI (daily graph) present in all three.
Major reversal just about to occur?
SPX nose diving to 3775 - bull trendline major support.
Monitor closely that level to understand next developments.
Breaking through trendline would mean free falling (see Fibonacci's levels), differently it will go back to 3900 and more.
Tesla grew on a major dynamic trendline on the last few weeks. Touched it a few times before breaking through significantly, pulling back once and testing it again before closing right on it.
Expect pullback to continue to 600 area as divergence with CCI is in place
Green Light: increasing tops on SPX, great strength on RSI, bulls all the way to the top. Go!
Yellow Light: increasing tops on SPX, decreasing strength on RSI. Complete the crossing or stop!
Red Area: Stop
On top of this: take a look at the major trendline...rejection is close
Same pattern repeating?
It appears current times are very uncertain, easy to get lost in too many indicators
Let's take a look again at some known patterns, again 1929
Like a magnet...pushing up and down SPX with a very similar pattern even in the two recent spikes up.
Let's test the model now, which suggest a dramatic drop to 2500 area by October 20th.
Don't forget that people, under...
1929 data, matched on the first major lows (13 november 1929 on 22 march 2020), still a valid guidance.
There were some deviations (please note June also) due to short squeeze + liquidity avalanche not available in 1929.
But will all due differences, human reaction to stressful situation is very much comparable and reflected in the graph.
Recent peaks are...
Ok so market is FED up with this short squeeze
Now nosediving back to 1929 signal
Many other indicators joining the party:
1. EUR/USD from 1.2 to 1.18
2. VIX spiking up
3. CCI showing bearish divergence
4. BITCOIN crashing
5. Put Call SPX through the roof
"Is this your homework Larry!? Is this your homework?!
You see what happens....!!
You see what happens...
Bitcoin compared to SPX (good correlation) but showing divergence in the last trading sessions
Very large divergences between Bitcoin and CCI on a large period to smooth out noise show resemblance of March's dip
instability on a large scale coming
Oil price in H4
CCI with a very long lag to smooth out daily and weekly noise, see how well you spot numerous divergences on the way down and the super divergence showing the following recovery.
Now in just one days CCI is entering an area unseen since last May
Someone big is selling here --> instability coming soon
1. Vix spiking with increasing relative tops and relative bottoms
2. Put/Calls ratio going up and now around 2 (every 1 call there are 2 puts around)
Previous short squeeze, which caused innatural spike in S&P, is very well justified looking at quick covering of many shorts building up after August 11th shake
1929 is looming around the corner
See where we are...
Shaping forces of this rally ended on August 11th, in close similarity to 1929
Evidence of this:
1. Peak in VIX on August 11th
2. Bearish divergence SPX vs CCI that followed right after, reflecting on VIX (future S&P prices) rather than actual S&P prices, wich underwent a short squeeze
3. Second peak on VIX last week (and today)
Don't be fooled by the short...
Smokey insisted with this short squeeze
We are already in the reversal zona, aka the world of pain
VIX moving up
EUR USD still weak
"Has the whole world gone crazy?!
I am the only one around here who gives a shit about the rules!?!?
MARK IT ZERO!!"
Yesterday's run is obviously a short squeeze.
Major divergence between SPX and CCI
EUR/USD showing weakness
VIX still high
The squeeze is still going on as we speak and will keep going ahead but expect reversal during the day