SPX Bounce - High Octane Speculation
DSIs all at extreme lows (5) with VIX DSI at extreme high (96).
Put/Call ratio at ATH (with the data available).
Cumulative distribution is extremely low, similar to 2002 and 2008. In both cases the SP rallied around 20% in 6 weeks or less.
SPX down >7% just this week with 490 of the components down.
Demark countdown exhaustions flashing in indexes 4h/3h/2h/1h time frames. Also daily in sensitive assets like crude (WTI/BRENT) and a lot of single stocks.
RSI formed positive divergence and bullish patterns in most time frames.
At the low end of the current downwards channel, and seems to be forming a bullish broadening wedge.
Current decline levels of support/resistance fit very well with most fib retracement levels from October's highs if it were to reverse here.
If the preferred path of recovery was to manifest, it would rally ~17% until the end of January.
The path is highly speculative, but I think there's a good R/R here.
Put/Call ratio at ATH (with the data available).
Cumulative distribution is extremely low, similar to 2002 and 2008. In both cases the SP rallied around 20% in 6 weeks or less.
SPX down >7% just this week with 490 of the components down.
Demark countdown exhaustions flashing in indexes 4h/3h/2h/1h time frames. Also daily in sensitive assets like crude (WTI/BRENT) and a lot of single stocks.
RSI formed positive divergence and bullish patterns in most time frames.
At the low end of the current downwards channel, and seems to be forming a bullish broadening wedge.
Current decline levels of support/resistance fit very well with most fib retracement levels from October's highs if it were to reverse here.
If the preferred path of recovery was to manifest, it would rally ~17% until the end of January.
The path is highly speculative, but I think there's a good R/R here.
Trade closed: target reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.