SPX has closed below 40EMA. Next stop @ 100/200 EMA at 2020.
We may see a repeat of Nov & Dec 2015.
1) Short now and see if price gets supported by the 100/200EMA confluence zone. The reason for shorting is because we have turned around and it's usually the best to stay with the trend.
2) If 1) happens, wait and see if price breaks above 2100 or...
Two possible near term scenarios both point to possible retracement.
1) Red Box Price bounces off from 20 EMA and tests the year long resistance zone again.
2) Blue Box Price bounces off 40 EMA. After the retracement, price might test the annual resistance zone.
*See if the daily candle makes a higher high compared to the May 3rd candle.
While it's possible that we may start retracing from here - similar to Sept 2015 rally - the current downward channel should be noted.
Scenario 1 (Red Arrow) is the most bearish scenario where we dive straight to $25, and scenario 2 (Blue arrow) is the less bearish case where we retrace before falling further.
I personally do not set price targets, but if I have...
Ladies and gentleman, I present to you the latest brand new super innovative pattern in technical analysis - the Garfield Pattern.
You may think I am not being serious, but I am dead serious and have entered a short position at 47.2 prior to FOMC meeting yesterday.
Why have I done this? Well FOMC minutes seem to be emphasizing on the dullness of price data, and...
My fellow bears and superbears, the time has come to short WTI crude oil and capitulate all the bulls.
The last Fib extension cycle points to a drop to at least $42, and if the bearish momentum maintained, we could see 37.53 by the month's end.
As a perma bear I hate to say this but I must warn you all that if we fail to breach the triangle within this cycle,...
If this channel holds, I think we can expect 4.5-5% profit over next two days or so.
Of course, the most crucial pivot for this plan lies on the market sentiment on rate hike. Any hawkish news could push the index below the channel.
We all know that the S&P 500 had been stuck in a choppy range-bound trend since the start of the year - counting from its start on February, that's almost 5 months! We also know that the last three trading sessions have, at last, completely destroyed the stalemate. So naturally, the question on everyone's mind is: What's next?
The simple question that we all ask...
The following paragraphs are a conjecture on the price movements of WTI given a strict assumption that the bearish trend will maintain for the next 3-4 weeks.
First, we will see a breach of 39.93 - 40.05 support followed by a fall to the 38.07 - 38.35 level. Note that the Fibonacci extensions seem to be aligned with the key support levels of 2008 lows (shown by...