Can you envision S&P500 at 20k? This is why most investors fail!If you follow us through all those years then you know how fond we are of long-term patterns. Especially those of a multi-year perspective that can offer maximum reliability and as close to a flowless projection as it can get.
The current chart (1M time-frame) on the S&P500 index (SPX) is no exception and you might be no strangers to it as we've published it on April 10 2024 (see chart below) when the price was still at 5200 (against 5700 now):
That was at a time of high market uncertainty after a strong start to the year and as we were entering the bearish seasonality of Summer. This rise however should come as no surprise to those that can read charts and market behavior objectively. As we mentioned at the time, this is a long-term perspective that gives you the picture unfiltered with the facts only.
What you see on this chart is S&P's Cycle Analysis on a century wide scale from the rally in 1921 that led to the Great Depression. Since that 'mother of all recessions', the stock market started to create a pattern of clear systemic behaviors. Each time there are fundamentals involved that merely serve as 'reasons/ excuses' to fill out and complete this pattern.
** Great Depression: 1st Bull Cycle **
Following the 1932 Great Depression bottom, the 1st Secular Bull Cycle begun, that lasted for 28.5 years (343 months) rising by +1888%. Then the Secular Bear Cycle started in the form of a Megaphone pattern. Its 1st Low was formed below the 1M MA100 (green trend-line) and the 2nd Low (the Cycle's bottom) was formed below the 1M MA200 (orange trend-line).
** Vietnam War to High Inflation: 2nd Bull Cycle **
The 2nd Secular Bull Cycle lasted for almost 26 years (311 months) and saw +2361% growth. As per our blueprint, the Secular Bear Cycle was initiated once the 1M MA50 (blue trend-line) broke. Again the 1st Low was formed below the 1M MA100 and the 2nd Low below the 1M MA200.
** Post 2008 Housing Crisis: 3rd Bull Cycle **
With regards to the current Cycle, which is what most are interested at naturally, notice how the 1M MA50 has been supporting since late 2011. It emphatically held both on the September 2022 Low (Inflation crisis bottom) and the March 2020 Low (COVID crash bottom). This indicates again that as long as it supports, the Secular Bull Cycle will be extended.
Based on the previous Cycle-to-Cycle parameters the model suggests that the current Cycle should be a little than 23 years long (279 months, i.e. 32 month shorter than the previous) and rise by +2834% (+473% higher than the previous).
That gives us a rough target for the S&P500 of around 20000 estimated to take place by 2032!
** New updates: Price and Time Fibonacci levels **
What we've added on the current updated analysis relative to the on in April 2024, are the Fibonacci levels both on the x (time) and y (price) axis.
As you can see, the S&P is currently exactly on the 0.618 Fib price axis and between the 0.618 - 0.786 Fib time axis. That is a highly symmetric correlation with roughly the year 1992, right at the start of the Dotcom Bubble that led to the 2000 burst and subsequent crisis. The index was again on the 0.618 Fib price axis and within the 0.618 - 0.786 Fib time axis.
** Is A.I. the new Dotcom? **
It was the Internet Mania that accelerated the 1974 - 2000 Bull Cycle to its peak and this time it may be the A.I./ Blockchain/ Crypto etc Mania that may aggressively lead the current (2009 - 2032) Bull Cycle to the next Great Recession. Note that just like the Internet didn't go away because of a mere act of amazing greed (the Dotcom Bubble) but instead served as the backbone of the Age of Information and a new Economy (e-commerce, social media, digital investing etc), the A.I. Bubble that has started fueling the market since 2023 shouldn't be demonized when it pops and in our opinion won't go away but instead serve as the backbone of the next Age of Reality and Commerce (metaverse, augmented reality, robotics, artificial intelligence, electric vehicles etc).
It has to be said, that the current Bull Cycle is much more similar to the 1974 - 2000 one than the 1932 - 1965, which understandable as neither banking or trading was that evolved or matured as it got with the financial engineering of the 80s and beyond.
** Conclusion **
In any case and as we are concluding this publications, all the above projections based on this 'Cyclical blueprint' may be speculation theoretically but trends that keep repeating themselves over the decades are not. Technically those patterns filter out all news, fundamentals, geopolitical, macroeconomical noise and give rise to a pure behavioral perspective, the essence of traditional Economics.
So based on that model, are you also expecting to see 20000 in 8 years time?
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Es1
Full Trading Plan For Monday Nov 4thPlan for Monday
Supports:
• Major: 5760-63, 5740, 5728-30, 5712, 5692, 5677, 5661, 5646-50, 5616, 5599-5602, 5590, 5575, 5563, 5544, 5524-28, 5499-5502
• Minor: 5756, 5751, 5745, 5723, 5715, 5702, 5683, 5672, 5667, 5654, 5638, 5633, 5627, 5621, 5578, 5558, 5552, 5534, 5517, 5511, 5506
Overview:
We’re moving into a high-volatility week with the upcoming election and FOMC. Most volatility is expected post-election (Tuesday evening and Wednesday) with FOMC on Thursday, creating a challenging trading environment with broad, two-way swings. Conditions should be favorable for failed breakdowns, with more detailed guidance to come in other days plans this week. For now, we saw organized price movement: elevator down on Thursday, short squeeze relief on Friday, back-testing 5802, then rejection. Bulls haven’t reclaimed significant levels (like 5802), but they’ve held prior lows, and the 5802 rejection was gradual. The relief bounce remains live until 5728-30 fails. Closing near 5760-63, this level could pop again, but headline risk suggests waiting until Sunday’s open for an entry. Below, a strong support cluster sits at 5740 and 5728-30. Testing 5740 could be viable, but 5728-30 is a safer bid zone, especially if it sets up a failed breakdown near recent lows. If this zone breaks, it’s likely we’ll see an “elevator down” scenario like Thursday. Below 5728-30, I’m not rushing to long, but levels like 5712, 5692, and 5677 could be interesting zones for potential reactions, especially 5677.
Key Zones for Monday:
• 5740: Major support; bears might push through. Look for a possible recovery above 5740 as a sign for a long setup.
• 5728-30: Critical support; if breached, approach with caution, i will be waiting for clear failed breakdowns before entering here
• 5712, 5692, and 5677: Areas of interest lower down. These levels may offer potential entries, but patience is advised to observe reactions.
Resistances:
• Major: 5783, 5797-5802, 5820, 5826-28, 5854, 5864, 5880, 5886, 5911, 5919-22, 5937, 5953, 5965, 5976
• Minor: 5770, 5779, 5792, 5807, 5813, 5838, 5842, 5848, 5861, 5868, 5873, 5892, 5898, 5902, 5906, 5914, 5928, 5944,
The back-test short setup off 5802 worked well on Friday. Revisiting 5797-5802 on Monday may yield another short opportunity, though it’s not as fresh. Safer shorts may present at 5820 or 5826-28, which should produce a more decisive reaction.
Bull Case for Monday:
Bulls haven’t done much to show control but have managed to survive. The relief bounce holds as long as 5728-30 doesn’t break, suggesting continued back-tests of Thursday’s major breakdown zones. This scenario sees 5740 or 5728-30 holding on deep flushes. In an ideal setup, bulls maintain above 5760 and push up directly. A typical path might involve a test of 5802, followed by a dip, filling out the range, then advancing to 5826-28. Adding around 5760-63 or pops above 5670 may be worth exploring, but patience is recommended.
Bear Case for Monday:
The bear case strengthens if 5728-30 fails. As noted daily, breakdown trades below support carry risks. Failed breakdowns are often the norm, with roughly 80% of breakdown attempts resulting in traps. These setups are advanced and should be executed cautiously. Even for skilled traders, over 60% of breakdown trades may fail, with only the occasional setup yielding high returns. If this risk isn’t tolerable, or if you’re newer to trading, it’s wise to avoid these trades. I generally avoid chasing setups; the zone needs to be tested with a clear failed breakdown before shorting, potentially around 5723 or below based on the structure.
Summary for Monday:
The focus remains on the election. We’re in a relief bounce from Thursday’s lows. My bias leans toward a continuation of this bounce, potentially revisiting 5797-5802, then dipping to target 5828. If 5728-30 breaks, the relief bounce is invalid, likely initiating a next leg lower, potentially below 5700.
Stock Market ft. The BIG SHORT.Election coming, looks to be priced in as we speak, expect a drop, probably more severe than my chart if the conditions are met BELOW..
Conservative levels to short above (no guarantee we are coming back to those levels) as the futures market can continue to plummet as early as Monday next week.
I expect a heavy forecast of rain up until the election and after, we are about to see some crazy $%^& in the next few months,
Price is weighted on the weekly, to Target 1, if that level doesn't hold we will see target 2 and target 3 QUICK,
If my price reacts the way I think it is, I will be dropping a multi-year monthly chart to follow,
Good luck traders.
S&P500: 1D MA50 hit after 50 days. Is it a buy?S&P500 just turned bearish on its 1D technical outlook (RSI = 44.346, MACD = 12.360, ADX = 37.705) as it hit yesterday the 1D MA50 for the first time since September 11th. The Channel Up since August is intact and each of its two previous Lows took place on the 1D MA100 and 1D MA200 respectively, so each time an MA period higher. The 1D RSI is also reversing on a similar pattern as those two Lows. Our Target is the top of the pattern (TP = 6,000).
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Bulls and Bears zone for 11-01-2024Could yesterday's sell off be just like Halloween
surprise ?
Event though, S&P closed at its Low, but ETH session traders are trying to rally.
Level to watch: 5763 --- 5765
Reports to watch:
US ISM Manufacturing Index 10:00 AM EST
US Construction Spending 10:00 AM EST
Es levels and targets Nov 1stOn Wednesday evening, ES saw its first short trigger in over a week by breaking below 5843. This led to 30 hours straight of steady selling, reaching the 5744 target. We’re seeing a relief pop now, but bears still remain in control until 5802 and 5828 are recovered.
As of now: Upside targets are 5770, 5788, and 5802. Key support is 5741; if that fails, 5721-26 zone next down
ES levels and targets Oct 31stAfter a full week stuck in the same range, ES finally broke lower, triggering shorts yesterday evening—the first breakdown in over a week, as outlined in yesterday’s 4pm trading plan. Bears have the advantage now until a resistance level reclaims.
As of now: 5828 needs to recover to establish a potential low. Next downside targets are 5800, followed by 5792-88.
ES Levels and targets Oct 30thFor the past two weeks, ES has been forming a large flag pattern with 5864 acting as a key mid-pivot. Yesterday, I was eyeing a rally to the upper range at 5882, 5891+, and we hit 5892 overnight.
As of now: Expect some complex chop. Supports are 5864 and 5855; staying above these keeps 5882, 5891, and 5896 in play. If 5855 fails, I’m looking for a drop to 5838.
S&P500 Bottom expected this week.New bull phase to 6500 startingThe S&P500 index (SPX) has a red 1W candle last week, its first after 6 straight green. This was a much needed technical correction on a rally that has been holding since the August 05 low, while on the longer term it's part of a Channel Up that since last October (2023), hence a year ago, is being supported by the 1W MA50 (blue trend-line).
We've identified a similar pattern, essentially an identical price action that started after the March 2020 COVID bottom and extended all the way to the November 2021 peak. It appears that relative to that Channel Up pattern, we are about to complete this week step (e), which on May 17 2021, it priced the 2nd straight red week and then resumed the uptrend.
Technically, as long as the 1W MA50 holds, we remain inside a Bull Phase. The symmetry between the two fractals is striking, both have ascended by +43.46% up to step (e). If this symmetry continues all the way to the top, then that could be at a +62.37% rise from the Channel's bottom.
As a result, this gives us a 6500 Target (at least) by Q2 2025.
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DreamAnalysis | NASDAQ's Next Move Key Levels & Strategic Setups✨ Today’s Focus: NASDAQ (US100) – A Major Market Influencer
We’re diving into the latest NASDAQ price action to pinpoint crucial levels, assess potential trends, and uncover strategic trading opportunities.
📊 Market Overview:
Currently, NASDAQ is positioned in a deep premium. The price has broken through significant buy-side liquidity levels, including the Previous Month High (PMH) and Previous Week High (PWH), setting the stage for a potential move toward the all-time high. A bearish Smart Money Technique (SMT) signal also aligns with the SPX500 (ES), hinting at possible headwinds.
🔴 Short- and Long-Term Outlook:
We’ll explore both bullish and bearish setups, equipping day traders with insights to approach both short-term and long-term trends effectively.
🗣 Short-Term Outlook:
In the short term, two scenarios could play out: either a push into the Buy Side Liquidity targeting the all-time high or a rejection at the 4-Hour Imbalance, leading to a lower move. Lower timeframes will be crucial for monitoring these moves—drop down to spot key market movements in real-time.
🗣 Long-Term Outlook:
Looking long term, there’s potential for a pullback into a Discount level. For entries, tracking lower timeframes is essential, especially as we’re near the all-time high. The bearish SMT divergence with SPX500 (ES) reinforces the possibility of a downward expansion.
🕓 Key Levels to Watch:
These levels will likely shape price movement:
- PMH: Previous Month High
- PML: Previous Month Low
- PWH: Previous Week High
- PWL: Previous Week Low
- BSL: Buy-Side Liquidity
- SSL: Sell-Side Liquidity
- Weekly FVG: Weekly Fair Value Gap (Imbalance Zone)
Fair Value Gaps (FVGs) serve as pivotal retracement zones, potentially guiding the next price movement.
📈 Bullish Scenario:
In a bullish setup, watch for Low-Resistance Sell-Side Liquidity sweeps on lower timeframes (LTF). Look for entry signals targeting higher levels, including a potential move toward the all-time high (ATH).
📉 Bearish Scenario:
For bearish trades, focus on lower timeframes such as the 15-minute chart. Short entries within the 4-Hour Imbalance or a breakdown of Low-Resistance Buy-Side Liquidity provide further confirmation.
📝 Final Thoughts:
Stay adaptable as market dynamics shift. By monitoring these key levels and setups, you’ll refine your strategy and increase the potential for high-probability trades.
🔮 On the Radar:
We’re also tracking NASDAQ, DXY, EUR/USD, and other major markets for evolving insights and timely updates.
⚠️ Disclaimer:
This analysis is for educational purposes only and not financial advice. Always do your own research and consult a licensed financial advisor before making any investment decisions.
ES levels and targets Oct 29thAfter rallying to the 5882 target yesterday, ES spent the rest of the day chopping around 5864-65 support. This level remains the pivot/magnet of a two-week range, and we’re not done with it yet—it was lost overnight.
As of now: 5843-46 is the next major support level below. If that doesn’t hold, look for 5834 and 5815. Bulls need to reclaim 5855 to rally back toward 5864-65, with 5878+ beyond that.
S&P500: Next bullish wave is underway.S&P500 just turned bullish on its 1D technical outlook (RSI = 57.557, MACD = 35.840, ADX = 41.016) as the price made a rebound last Wednesday on the 4H MA100, right at the bottom of 6 week Channel Up. The 4H MA100 is the level where the last HL was also priced (October 2nd). Morever the 4H RSI hit and rebounded on the S1 Zone. Regarding the bullish waves, both previous ones have recorded at least a +3.50% rise. This is our expectation once more and we are aiming for slightly under it (TP = 5,950).
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ES levels and targets Oct 28thFor the past two weeks, ES has been stuck in a range. We ran to the top of it on Friday, then sellers pulled back. I noted in plan Sunday that 5843 (or 5848 to be safer) needed to recover to push higher again—closed below it late Friday, and reclaimed at open Sunday reaching 5882+. The money has been made, hold runners.
As of now: A bit of complexity today. 5865 is solid support and needs to hold to keep 5882 and 5892+ in play. If 5865 fails, expect a dip toward 5857.
Weekly Forex Forecast Oct 28th: S&P500, NASDAQ, & DOW This is the Weekly Forex Forecast for Oct 28 - Nov 1st.
The S&P500 and NASDAQ are neutral at the moment, but the trend is bullish. Patience will pay off if we wait for confirmations to bullish orderflow.
The DOW is looking weaker than the other two. It is clear the short term profit targets are to the sell side liquidity.
Check the comments section below for updates regarding this analysis throughout the week.
Enjoy!
May profits be upon you.
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Disclaimer:
I do not provide personal investment advice and I am not a qualified licensed investment advisor.
All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies.
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Conduct your own due diligence, or consult a licensed financial advisor or broker before making any and all investment decisions. Any investments, trades, speculations, or decisions made on the basis of any information found on this channel, expressed or implied herein, are committed at your own risk, financial or otherwise.
$spx going to 11k over the next 3 to 4 yearsIm expecting the current bull to continue for another few years, with a deep correction in between now and the expected target of 11 k, by 2028/29...
From there I expect SP:SPX to enter a sideways bear market such as the ones of 68/75 and 2000/2009 in order to form the 4th base of the secular run since 1929 (shown the comments).
Bears always get it wrong, because of their self-delusions about the world and often also themselves!
It's bulls who - due to their prescience and foresight - actually get to foresee tops in the market.
Bears never catch a top, if they do it's either by coincidence, luck or something a four year old could have seen, like the covid top... anyway... we see so much madness in the ideas section, it's even fun!
S&P500 Buy this pull back.S&P500 / US500 got rejected today on the Falling Resistance of the previous High.
This is the very same pattern we had between Sep 26th - Oct 6th.
After the pull back was completed near the previous Low, the price rebounded above the Falling Resistance to a +2.17% rise.
Even the first rebound on the Rising Support, rose by +2.19%.
Buy the current pull back and target 5900 (+2.17%).
Previous chart:
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U.S. Aggregate T-Bond Market. Fears & Greed AwakeningStocks heavily sold off Thursday (again), with the Dow Jones Industrial Average (DJIA) tumbling nearly 500 points, as investors’ fears over a recession surfaced.
Some fresh data stoked fears over a possible recession and the notion that the Federal Reserve could be too late to start cutting interest rates. Initial jobless claims rose the most since August 2023. And the ISM manufacturing index, a barometer of factory activity in the U.S., came in at 46.8%, worse than expected and a signal of economic contraction.
After these releases, the 10-year Treasury yield dropped below 4% for the first time since February.
These weak data releases come a day after central bank policymakers chose to keep rates at the highest levels in two decades, when Fed Chair Jerome Powell gave investors some hope by signaling a September rate cut could be on the table.
Labor situations is on the radars also, as fresh unemployment data expected on Friday, August 2.
The main technical chart is for U.S. Core Aggregate T-Bond Market ETF (AGG), in total return format/
With 11782 total number of holdings, AGG is US bond market in miniature.
Fears & Greed Awakening.
👉 VIX and VXN are sitting closer to their important levels, 20 and 25 points respectively.
👉 VIX to 50-Day VIX SMA ratio has recently jumped above 1.40, and this is the biggest level over the past twelve months.
👉 VXN to 50-Day VXN SMA ratio has recently jumped above 1.40, and this is the biggest level over the past twelve months.
👉 Difference in 20-day stock and bond returns slumped almost to Zero.
Technical observations
👉 AGG technical graph indicates on huge developing Reversed Head-and-Shoulders, with 2-year highs breakthrough.
👉 The nearest target could be considered is multi top, around $108 mark.
👉 In mid- to long term it could be good for stock indices and markets, despite of possible turbulence and seismic activity.
Es levels and targets Ot 25thWednesday, sellers broke below the key 5865 level and buyers back-tested it yesterday. As expected, we got another back-test today, which just hit. It’s still a solid resistance level—protect gains today and keep a runner if you can.
As of now: Looking for a base to form, with 5878-83+ being the next upside targets. Supports are at 5848 and 5842; if these don’t hold, sellers may step in heavy
Full Trading Plan For ES/SPX Oct 25thPlan for Friday:
Supports:
• Major: 5842, 5825, 5805-07, 5787, 5763, 5756, 5746, 5725-29, 5711, 5690
• Minor: 5853, 5848, 5838, 5818, 5814, 5798, 5783, 5774, 5768, 5751, 5740, 5733, 5715, 5702, 5695
Overview:
Today was a straightforward backtest of 5864 followed by a dip, then a return to that level, marking a typical rangebound day. We are now in a new consolidation range between 5865-68 and 5825. Trading within this range could be tricky and highly technical, so predicting is a losing strategy. For tomorrow, I’ll trade light, expecting continued chop unless the 5865-68 resistance clears.
Key Zones for Tomorrow:
• 5842 is the first support down but is now less reliable due to today’s battleground. If ES dips to 5838 and reclaims it, I may consider going long, but only if no new highs above today’s peak are made first.
• Below 5838, expect a fast flush to 5825 (major support). I’d consider a long here if there’s a failed breakdown of today’s low (~5822), meaning a recovery above 5825 after a brief flush. If 5825 fails, it could indicate that bears still have control, and longs become riskier. The next key long interest is 5805-07 or failed breakdowns of yesterday’s low.
• Deeper support for long interest would be 5756 if we see a larger flush.
Resistances:
• Major: 5865-68, 5882, 5890-92, 5910, 5919, 5945-47, 5971
• Minor: 5861, 5878, 5886, 5899, 5902, 5907, 5914, 5927, 5933, 5940, 5958, 5966
We haven’t cleared the significant 5865-68 resistance yet. Even if we pop up there tomorrow, another dip is likely before any breakout. If we do break through, we could see a squeeze up to 5882, potentially followed by a dip before pushing higher to 5892. If the breakout continues, we may see a push toward new ATHs in the next leg up.
For those interested in shorting, 5882 is a potential level. However, I won’t be shorting above 5865-68.
Buyers Case Tomorrow:
Buyers case would see ES continue to consolidate between 5825 and 5865 before breaking to the upside. The scenario would likely involve a pop to 5865-68, followed by one more dip (could be significant or small), and then a breakout targeting 5882 and 5892. Afterward, a dip may happen before pushing higher toward ATHs.
• I’ll keep an eye on 5842 for long opportunities on dips and potential recoveries at 5848.
Sellers Case Tomorrow:
Sellers need to break 5825 to regain control. If 5825 fails, it could indicate that the recent dip was not a one-off. However, breakdown trades are risky as 80% of breakdowns typically trap traders. These setups require a high skill level and may fail multiple times before paying off significantly.
• I won’t chase shorts after a 30-point sell-off. I’d prefer to see 5825 tested, or a failed breakdown of today’s low before shorting under the bounce structure (possibly around 5818 or higher).
Summary for Tomorrow:
• Expect consolidation between 5825 and 5865-68 with potential ping pong price action.
• Leaning toward a pop to 5865-68, then possibly a dip before breaking out higher to 5882+.
• If 5825 fails, we could see further selling.
Trade cautiously in this consolidation range, as the price can take complex, unpredictable paths.
Es levels and targets Oct 24Full round trip: In ES, every sell-off has been followed by a short squeeze, and we saw both play out yesterday. Once 5857 broke, shorts were triggered, and I was eyeing 5854, then 5864 on a reclaim, both of which were hit overnight.
As of now: 5864 (weak) and 5855 are the key supports. If these hold, 5878 and 5886 stay in play. If 5855 gives way, 5838 below
S&P500 This pull back is an excellent buy opportunity.S&P500 is pulling back intraday but remains over the MA50 (1d).
The bullish trend is intact and is being guided by this long term Channel Up since the 2022 bottom.
The price is right nowjust over the 0.382 Fib Channel level, which isn't overbought by any means.
Trading Plan:
1. Buy on the current market price.
Targets:
1. 6000 (the 0.618 Fib level).
Tips:
1. The RSI (1d) is about to touch its Rising Support, a pattern very similar to the March - June 2023 Rising Support. The two fractals look identical even on price terms. This also indicates a continuation of the bullish trend.
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