SP500 Major timeframes Volatility ahead
We are currently only - 4% from ath of 4545
Looking at the quarterly time frame at the top right corner we can see a clear shooting star formed
On the monthly (bottom left) we are already 2 to the downside after a 3 candle which is something important to pay attention to. Look at previous 3 (outside candle) on the monthly and you will see they usually signal a reversal.
If we look at the weekly, we are right back at the 20 week ma which so far as proven to be a perfect place to buy the dip.
I would personally exercise caution over the month of October with a lot of headline risks ahead and further reality of tapering settling in I believe it's prudent to manage exposure on the safer side.
This being said as a trader a more volatile market is definitely up to our benefit over a market with vix at 12
Personally I am seeing a quarterly candle that will inevitably go 2 to the downside at 4233 which would be -6% from ath and likely trigger some further selling after that. This feels more like the pullback we had last year from august to late october. we made ath on aug 20 at 3588 and pulled back -10% to 3209. On Nov 9th we were making new aths and never looked back.
Pay attention the sectors to look at the rotation. Focus on the best companies
Over the last month
- Small caps +3%
- High Div +1.5%
- Value +1.5%
- Growth -1.25%
Looking at the quarterly time frame at the top right corner we can see a clear shooting star formed
On the monthly (bottom left) we are already 2 to the downside after a 3 candle which is something important to pay attention to. Look at previous 3 (outside candle) on the monthly and you will see they usually signal a reversal.
If we look at the weekly, we are right back at the 20 week ma which so far as proven to be a perfect place to buy the dip.
I would personally exercise caution over the month of October with a lot of headline risks ahead and further reality of tapering settling in I believe it's prudent to manage exposure on the safer side.
This being said as a trader a more volatile market is definitely up to our benefit over a market with vix at 12
Personally I am seeing a quarterly candle that will inevitably go 2 to the downside at 4233 which would be -6% from ath and likely trigger some further selling after that. This feels more like the pullback we had last year from august to late october. we made ath on aug 20 at 3588 and pulled back -10% to 3209. On Nov 9th we were making new aths and never looked back.
Pay attention the sectors to look at the rotation. Focus on the best companies
Over the last month
- Small caps +3%
- High Div +1.5%
- Value +1.5%
- Growth -1.25%
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