SPX-Bullish SetupCycle breaking out of the fourth wave and looking to complete wave 5 somewhere close to the 2.618 4100-4200 I'll start taking profit. Note the RSI hidden bullish divergence as well as the daily time-frame RSI has tagged and found support on the 40 lvl. Both of these two RSI signal indicate that we just completed a bullish correction for further up. Post any questions you may have or dm me. Happy Trading!
Equity
Stocks Face HeadwindsThe S&P has retraced significantly from highs. We are seeing quite a bit of volatility as large price swings of a full ATR or more are quite common with this product right now. These price swings have even registered with the Kovach OBV which is telling us there is a lot of momentum here in these buying and selling waves. The Kovach Chande is at highs. Since this is an oscillator, it is saying that the pendulum has swung to the buy-side and we are due for another retracement. If we are correct, we can expect the S&P to test 3713 or even 3675. From there it should find support. if it is able to breakout to the upside, there is a vacuum zone back to 3792
Cautiously Optimistic of StocksStocks saw some incredible volatility yesterday. No doubt some of this is related to the GameStop saga. The S&P 500 has completely retraced the bear move only to give back thse gains and settle around a cluster of levels beginning at 3737. It is likely to find support here, at least for the moment, which seems to be verified over the past few hours. If it breaks further down it will have support at 3714. the next level is in the 3600 handle at 3694. The Kovach OBV has whipsawed which is extremely rare. Usually this indicator goes with the overall trend. This is telling us that there is an extreme amount of momentum in stocks lately, in both directions: selling and buying. It is difficult to determine the overall direction of stocks, however we still remain cautiously bullish for now.
Cypher Pattern Breakdown in StocksStocks have faced a tremendous retracement. The S&P has blasted through levels in the 3800 handle. It tested the low 3700's before finally finding support. There is a bearish cypher crab pattern on the daily chart. This is an extremely bearish sign, and such a large selloff could be the initial breakdown from this pattern. The Kovach OBV is registring the sell off. Currently, the S&P is ranging between 3712 and 3750. It is reasonable that it should try to find footing after such a tremendous selloff. The boundaries of this range will provide support/resistance, so pay attention to what happens at open. The next levels of support are in the 3600's at 3695, then 3676 then 3658.
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Based solely on the technicals, I will wait for it to decline till it's support before going long. Based on RSI, it seems to be declining. Will wait for a reversal before going long.
Based on the fundamental analysis, I guess its still pretty average (yet to compare against industry average).
Japara Buy LimitJapara buy limit trade - The number and percentage of old people in australia is rapidly growing and I anticipate the aged care industry to grow considerably in the coming years. Despite Japara's downside their books are good, and they have large holdings all across australia.
Stocks Reject Highs!! When to Buy??Our prediction in stocks was 100% on point yesterday! We wrote that stocks would have resistance at highs. At the open, the Kovach Momentum indicator (short term momentum) was flat, suggesting that there was little or no momentum at all. To break through to new highs, we require a nice burst. In the absence of momentum, ATH's act as a wall, which the price will swiftly reject. That's exactly what happened. Some of our traders were able to take advantage of this making serious profits off this rejection. The S&P 500 crossed the entire range, finally piercing through 3825. It finally found some support at 3810, which has now solidified its utility as a technical level in addition to a Fibonacci level. Expect stocks to take a breather here. The Kovach OBV has turned, registering the bear momentum. This is likely to continue, though we should see a bit of a retracement at current levels.
$AMC Pre market +96% Nothing to see here"AMC's gains came after the movie theater chain -- which has struggled with coronavirus-related closures and sagging attendance during the pandemic -- said on Monday it had raised a total of $917 million in financing." -the Motley Fool. Nothing special here. Just another day and another move. Highly speculative.