SPX into 2022
December edit: Weekly update
Weekly Chart
The Fibonacci from the swing low - to the top of the market, which created our new "0" as the new all time high part of the structure.
The Continuation of the weekly imbalance had created a new area on the weekly, and bi-monthly timeframe - which offered a 0.236 Fibonacci retracement, indicating that the buying imbalances are still present. [This is now the weekly zone to add long positions].
Now the -0.27, -0.618 extension targets are reached.
The Wedge channel had begun and created a very strong channel with an effective structure of the sellers attempting to make an imbalance. The channel has now provided areas where price can pivot to.
The monthly has a future strong imbalance formed.
The three month indicates where price can be used for buying activity* So long as price reacts to the 61.8 & 70.5% levels.
See the Pathway where price can take us, using the probability of a bearish imbalance formation.
SPX VS VIX
Refer to the weekly negatively correlated SPX and associated Volatility index.
*Note: please refer to US30 analysis or VIX for inverse relationship of correlation, not causation*
Current scenario
Vix Chart - please keep in mind that the VIX has correlation, causation is caused from the associated short term risk of the sentiment change within profit taking, impending policy changes, health warnings, war and other macro-factors.
https://www.tradingview.com/chart/VIX/s4jLu43r-VIX-chart-tracking/
Current outlook; Using the Daily chart
Refer to the DXY chart to follow the imbalance.
The analysis link is attached.
Related publications
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