Monthly charting similarities between the SPX, at months end, April 2022 vs. the NDX during the dot.com bubble burst.
All time high price-check
Monthly gap/s created after the break out from the 4-5 year trend line-check (purple line)
Monthly closing below the horizontal support to make it look like a confirmed H&S pattern on the monthly-check (orange line)
Closing the monthly below the Tenkan Sen line (Month 1) and then immediately closing back above it (Month 2) and then closing back below it (Month 3)-check
What to expect from the SPX during the month of May:
1. It should produce a very green bullish monthly candle (Month 4)
2. It cannot touch the purple trend line (This line is roughly 3960, give or take)
3. It should close at, a little above or a little below 4646 (This is 50% of the body of the candle that burst the bubble...January 2022 for SPX)
No two charts are perfectly identical and these might just be coincidences...only time will tell but it sure feels like a tug-o-war is happening between the bulls and the bears each month until one of them looses the battle.
At the end of 2022 will the bears be proclaiming the same message the bulls have been proclaiming since Covid began: Don't Fight the Fed!
If you can't tell, I'll be bullish in May (with a SL below my purple trend line) and will then re-assess the monthly chart upon May's closing.