SPX500 SHORT SETUP H1 BEFORE FED RATESThe price is currently in a bearish moment at the level of 4270, with a potential bounce zone around 4284, which corresponds to the 50% Fibonacci retracement level and a high-volume trading area. The objective of the short trade is to target 4220, where we have the 61% Fibonacci retracement level with high volumes and a demand zone for support before potentially dropping further to touch 4187. A descent is expected in anticipation of the Fed's interest rate hike next week.
Let me know what you think.
Happy trading to everyone.
Indicies
NASDAQ-100 AND SP-500 NAVIGATING FRAGILE MARKETS- T-bills to be issued by the end of Q3 drain liquidity and have an impact similar to a 25 basis point increase in benchmark rates.
- Further market extension is challenging due to possible overtightening.
- Unemployment data is a significant turning point.
- Unsatisfactory market breadth.
- Significant divergence between Nasdaq and Treasury 2-year.
Hello everyone,
Today I present a couple of ideas regarding the fragility of the Nasdaq 100 and the consequences for the S&P 500.
Firstly, I want to remind you that once the US debt agreement is reached, approximately 1 trillion dollars' worth of short-term Treasury bills (T-bills) will enter the market by the end of Q3, resulting in an inevitable liquidity drain from the stock market. According to industry reports, this issuance of government bonds may act as an additional 25 basis point increase in Fed rates. Furthermore, following the bank failures in recent months, we can expect further deterioration in the credit market, also comparable to a 25 basis point increase in Fed rates.
This leads us to a potential overtightening by the Fed due to the indirect rate increase described above. It will, therefore, be challenging for the markets to grow solidly due to the likely resulting economic contraction. Additionally, recent reports indicate that inflation is decreasing less than expected, and further rate increases by the Fed may be necessary, as dictated by their econometric models.
The unemployment data for this week will be crucial. If it indicates a potential rise in unemployment, we may see a pause in rate hikes, thus mitigating the possibility of a sustained market collapse in the short term. Otherwise, further credit tightening will be necessary, which will have a negative impact on the markets. If another Fed rate hike materializes, we could witness the liquidation of long positions built over time based on optimism about potential rate cuts at the end of the year. Without a year-end rate cut, the possibility of a credit squeeze continuing into 2024 arises, which would be detrimental to heavily indebted companies that will have to consider refinancing ongoing operations at much higher than expected rates. This will have a negative impact on future corporate profits.
We now observe the deterioration in the breadth of the index, displaying a negative divergence with three descending peaks. For the tech rally to continue, we will need further advances in AI-related stocks, the last line of defense before a correction (in the chart, market breadth is indicated in gray, calculated as the percentage of stocks above their 200-period moving average).
Finally, I would like to mention the significant divergence between the 2-year Treasury and the Nasdaq-100 since the beginning of May (in the chart, the 2-year Treasury is represented in cyan, with the axis inverted). I believe that this divergence will be corrected, but since a reduction in 2-year Treasury yields is unlikely, the possibility of a correction in the index remains.
Nice trading,
Cheers
US30 (Week of May21st)The previous idea for US30 still holds. I will still be looking for buys to the upper supply area for temporary or major sells.I will be looking for minor breaks of structure then a retest of the current demand zone to continue higher. I would prefer to get this entry at my trading session (New York), but if price moves up without me, I will look to take sell positions if market presents it self for that condition. Updates will be provided later. Good Luck!
spx500 Analysis Hey guys Looking at spx500 we can see we have some Solid Market Structure in play with some in effeciancies regarding price action and its left behind some imbalance or (gaps) in the market and we may see price action start to fill these gaps
now just because a gap has been created doesn't mean that its going to be filled there after it was created... price may take hours/days/ weeks or even Much longer to revisit these areas and mitigate the Gap
now from what we are currently seeing, looks like we're starting to see price reject somewhat here With the structure we have recently created and/or respected ( Please Check my Analysis for Possible Trade ideas
Disclaimer - past profits don't guarantee a future result... trading is risky and one can loose some or all of their trading capital!
Disclaimer - information shared is for educational and demo purposes only!!
DAX ShortGer30 rejected an area of interest on Daily chart
-strong close at the end of the day
- Afp conditions, going into level 1
-looking for a pullback (high) drop
Strategy - Market maker
NAS About To Make A Move?whats up TV Family!
quick question ? are yall loving the ideas being shared? if so Share some feed back with me on what i can do better to improve your experience!!
In this Analysis i'm looking at NAS100 and i am seeing a Significant rejection starting to take place here, i also see that we have respected this Beautiful uptrend for some time now, and once we see PRICE ACTION CLOSE BELOW the trend i wouldn't be surprised if we didn't see a very quick decline in price towards projected target areas i have drawn up that are high probability reaction areas as its not just a simple support but rather a strong area of interest with A Bullish engulfing OB that have been formed ( both blue boxes show the Bullish Engulfing OB ORder Block on the 1 hour time frame where i anticipate price to come!
Disclaimer - trading is risky and you can loose 100% of your trading balance with incorrect risk management! this is why it is important to master and manage your risk management plan before you even think of taking your first trade!!
i am not a financial advisor and this is not financial advice, please do your own due diligence and market analysis as this is shared for educational and demo purposes!!
Nas and Snp could be turning down...4080 for snp is a important level to watch..
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Dollar | What The Heck Is Going On?The dollar has been in a range of consolidation since a new low at 103.30 was made December 14, 2022. This has made trading the majors not the best decision as of late.
What can you do?
The best thing you can do is wait for price to make a new lower low or a new lower high. There is no need in guessing which way the dollar will go until she shows you her hand.
Should you trade?
There are other minor currency pairs with amazing opportunities. You job, my friend, is to go find those opportunities and trade them. Consider looking elsewhere for your trading opportunities following your trading rules.
Or...
Since this is the last trading week of the year you could rest and reflect on your performance this year so you can prep for next year. I choose to do the later of both of these options, but you have permission to do as you wish.
As for now, the dollar is chilling. I'm about to do the same.
Thanks for taking the time reading my thoughts on the dollar. Like this post to boost it. I appreciate you.
NAS 100 I It will rise from support Welcome back! Let me know your thoughts in the comments!
**NAS 100 - Listen to video!
We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met.
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InvestMate|DAX Time to fall🇩🇪 DAX Time to fall
🇩🇪 Looking at the last few weeks on the dax, we see quite a bit of unwinding after new lows.
🇩🇪 The dax has already rallied more than 15.40% from its lows
🇩🇪 In my last post where I perfectly predicted the correction that took place last week.
🇩🇪 It was followed by a breakout to new highs but I believe that the correction potential has not yet been fully exhausted.
🇩🇪 It is unusual in a serious long-term downtrend for the price to just keep going higher and higher from a new low.
🇩🇪 Sooner or later a correction comes.
🇩🇪 Is the 13600 level the ideal time for a correction?
🇩🇪 Definitely highly likely in my opinion.
🇩🇪 My assumption is confirmed by the fact that we are in a place where the price has already reversed direction once in the past and that it is one of the more important fibo levels 0.382 of the whole downward wave.
🇩🇪 The correction targets will be 2 levels, one more likely and the other a little less likely
These are the levels 0.382 and 0.5 of the current upward impulse. These are places where the price has found support many times in the past
🇩🇪This is a long-term scenario, I do not even exclude breaking out even higher before the decline.
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SP500 levels- sp500 lvls for next weeks
- beware of news at the begin of next month. / see other charts (ETH, SP500 )
- let me just post it here
- imo. pump before nuke.
NAS100 BUYEvening guys,
I'm going to breakdown NAS100 in its purest form.
I'm fairly new to trading NAS100 but from looking back over the years, this is one of the smoothest moving indices you can trade.
You can clearly see price respects these clear supply / demand zones.
LOL I'm trying to type fast because NAS is playing out so quickly despite being in the late NY session.
Price has failed to break below and hold previous support as resistance, we've now seen price break above into our range and is rejecting support.
I'm looking to take price to my next level of resistance where I may look to take another entry if price successfully breaks above and holds the next level as support.
Tomorrow, I'd be looking to buy or sell at support if price gives us a valid entry.
Stocks are extremely weak at the moment and they are definitely going to drop even further over the next couple of months.
🔍Watch this before you BUY US 30, 100, 500. Don't get TRAPPED!Everything is in the video. Thanks for your attention!
DXY correction & US30 Recovery PredictionUS30 & Dollar Index prediction in real time. Watch this video to find out my prediction! US30 & Dollar Index analysis.
US30 ! New point to enterwait for breakout and once it take retrace
then will take a entry for now us 30 is in sideways momentum
US30 ! New point to jumphere we have a good point all we need to wait for sustain the candle below or above the trend line after that we can enter into trade in bullish side we have 300+ point target and in sell it's 200+ target
GER30 Long coming up M15, M30 and H1 are oversold
There is a double bottom with divergence
There is no pattern bu there is a lot of support
40 pip stop loss
US30 - Approaching Sell Zone 🩸We can see that we're on the C wave now, which is made up of 5 subwaves. We are currently in wave 2 which appears to be an expanding flat correction. Watching for price to come up to our sell zone and reject.
Trade Idea:
- Watch for rejection of sell zone and/or fibonacci
- Look for lower timeframe trendline break
- Enter with stops above the recent highs
- Targets: 30,000, 27,500
Goodluck and as always, trade safe!
Possible Bearish Continuation For Stocks
Following on from my previous stock ideas, I'm expecting a further downswing after the consolidation bounce on most stocks for a Wave 'C' once the bearish continuation symmetrical triangle breaks down
Waiting for directional break currently
DJ:W1DOW
SP:SPX TVC:SPX OANDA:SPX500USD
OANDA:NAS100USD
NASDAQ:NQGM NASDAQ:NQGI