VIX Magic Bowls in ActionAs you can see from the images below, all of the bowls are the same size with similar action from the support lines.
This time out the VIX has broken out of the fallen wedge and looks to have confirmed it by touching down.
These have been quite accurate so far and I believe that we'll reach 34 by next friday.
Sounds quite silly, but the bowls are all of the same size and have performed quite well over the last 5 of them and I'm in a long position to take advantage of them again.
Snp500
US500 IS DIVING DEEPER INTO BEAR MARKETAfter policymakers have shown more appetite for interest rate hikes, S&P500 recorded its lowest close in almost two years and it is 24% down from its record high.
The technical indicators on 1H graph are also putting the index into bear territory, with MACD histogram below 0 and keeps decreasing and RSI well below 50 neutral line.
If the downtrend continues, the index might reach and test levels of around 3530 USD. If opposite scenario occurs, the price might test its previous high at 3800 USD.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
$VIX Has Reached Another FCP Zone - W Pattern Complete #VIXTraders and Investors,
The VIX picked up a lot of strength and violated the bearish flag that was earlier forming. Now it has just completed a W pattern which means that it can take a bit of correction. An extended version of this W pattern places the price in the next FCP zone as well. So although there are chances of it falling down, a little more strength can also push it higher. So watch this carefully along with indices.
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Rules:
1. Never trade too much
2. Never trade without a confirmation
3. Never rely on signals, do your own analysis and research too
✅ If you found this idea useful, hit the like button, subscribe and share it in other trading forums.
✅ Follow me for future ideas, trade set ups and the updates of this analysis
✅ Don't hesitate to share your ideas, comments, opinions and questions.
Take care and trade well
-Vik
____________________________________________________
📌 DISCLAIMER
The content on this analysis is subject to change at any time without notice, and is provided for the sole purpose of education only.
Not a financial advice or signal. Please make your own independent investment decisions.
____________________________________________________
Will Support Hold for Stocks?The S&P 500 is still in bear-mode, though it appears to have found some support at 3645 as we reported yesterday. We do appear to be seeing some meager consolidation with a narrow range forming between this lower bound and 3714. A red triangle on this level confirms strong resistance. The Kovach OBV does appear to be trekking upward, which may indicate that a relief rally is due. If so, it is not likely we will be able to break past 3749. If we sell off further, 3624 is the next target.
Double bottom pattern in formation?Is the S&P500 about to double-bottom? We should find out soon! Like today!
$SPY #SPX Watch This Level For A Possible BounceTraders and Investors,
With the dollar strength the indices have been taking a beating. US30, US500 and US100 have been following the same pattern but the leading one is still Dow Jones (US30).
On the SnP500 so far:
1. It has NOT touched/crossed the 200 sma on the weekly timeframe so a test and then a bounce is expected at some point.
2. There is an FCP zone coming around round number 3550 which can act as support
3. An extended M FCP pattern is forming and will complete around the FCP zone.
So watch this area closely to find a confirmation to go long for a bounce.
Please support this analysis by liking and sharing. 👍🙂
Rules:
1. Never trade too much
2. Never trade without a confirmation
3. Never rely on signals, do your own analysis and research too
✅ If you found this idea useful, hit the like button, subscribe and share it in other trading forums.
✅ Follow me for future ideas, trade set ups and the updates of this analysis
✅ Don't hesitate to share your ideas, comments, opinions and questions.
Take care and trade well
-Vik
____________________________________________________
📌 DISCLAIMER
The content on this analysis is subject to change at any time without notice, and is provided for the sole purpose of education only.
Not a financial advice or signal. Please make your own independent investment decisions.
____________________________________________________
S&P 500 Slammed AgainThe S&P 500 has been slammed by recession fears, a hawkish Fed, pervasive risk-off themes in the news, and a potentially disastrous hurricane barreling toward the gulf of Mexico (oil refinery hub) and Florida. We have completely given up the 3700's, and are deep into the 3600's with 3645 providing support at the moment. The Kovach OBV is hugging lows and appears to be very oversold. A relief rally could attempt 3700 again, but otherwise the sentiment is extraordinarily bearish. Our next target is 3624.
ES1! SPX500USD 2022 SEP 25 Week
ES1! SPX500USD 2022 SEP 25 Week
ES' short was awesome.
Possible Scenarios are considered:
1) Short on test and reject of 3792 // lower trend line
2) Long if 3540-3600 // 3711 // dotted and solid trend line is supported
Weekly: High vol down bar close off low = minor demand
Daily: High vol down bar close off low = minor demand.
H3: Possible bottom reversal = Demand > Supply
Price reaction levels:
Short = Test and Reject | Long = Test and Accept
3903 3792 3717
3642 3540-3600
Remember to like and follow if you find this useful.
Have a profitable trading week.
SPY revisited the last low, how now?Just to recap that after flipping into a (bear) rally, a back flip pushed the SPY further down from 13 September.
The past week was absolutely stunning...
from the SPY daily chart, the week started with a nice rebound, post-gap-down from the previous Friday. Then once the FOMC made their announcement, the SPY just gave way to lower lows (as earlier expected from the TD analysis). In fact, on Friday, althought he SPY did not clock a lower low, it reached within range of the last low in June. And this was met with a late session rebound. Friday's session was significant in the sense that there was yet another substantial gap down, it revisited near the June lows and came back with a late session rebound instead of selling off into the weekend. This candlestick formed tells of a technical rebound early next week. However, the technical indicators are bearish, suggesting that the support of the June lows will be taken out later after the rebound. On the upper side, there are two critical resistance levels. The first is after closing Friday's gap down (at 375) and needs to close above 378. If that happens, we might have another (bear) rally to the next resistance at 392.
On the weekly SPY chart, the candlestick analysis is suggesting that the bearish momentum is not yet abating. MACD crossed under its signal line, in the bear territory. A very big hint of the weeks' downside to come...
The bigger picture downside target of 325 around the end of October is still valid and feasible. Reviewing the candlestick patterns since August show very reliable patterns per candle and as a collective set of candestick patterns... mostly to the downside for now. Noted too that the weekly candle broke down below the Hull EHMA (bearish).
Overall, still down, after an anticipated technical rebound (early) next week.
Stocks Make New Lows After the FOMCStocks got slammed yesterday, breaking through lows in the 3800's. We anticipated support at the base of the 3800 handle, but the S&P 500 broke down even lower, currently feeling out the highs of the 3700 handle. At this time, 3758 has provided support and we appear to be attempting a push back to the 3800's. The FOMC meeting came out more hawkish than expected. Although we did get the projected 75 bps hike, the rhetoric of Powell's press conference that followed was quite somber and the markets did not get the dovishness they expected. They've reacted accordingly with this selloff. If we are able to break through current levels then 3825 is the next target. If not, 3758 should hold as a floor for now.
S&P 500 BEARISH OUTLOOKThe major US indices, including S&P 500, are continuing to plumed after the Fed rate decision yesterday. The interest rate reached 3.25%, as it was predicted, but the forecasts are that the interest rates will keep increasing into the entire 2023 as well, reaching levels of 4.6%
The technical indicators are suggesting a downtrend as well, MACD histogram is below the 0 line and the RSI is well below the oversold 30 line.
If the trend continues the price might test its levels at 3670, but if it reverses, it might test its previous high at 3958.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
SPY to last low and beyondThe Bear case scenario described previous just got another validation. Post rate hike reaction tells of a higher probability to revisiting the last low.
A strongly bearish candlestick accentuates the bear case.
The thing here is that reaching the downside target of 325 is clearly within reach.
Whichever way it takes: either closing the week on a technical bounce, or breaking down further, this trendy rout is not ready to end till November.
Perhaps more pressing might be the yet unseen collateral damage in this "no soft landing" scenario. A black swan type of event could just tip the drop off a cliff.
Plain and simple. Heads up.
Aftermath of the Fed rate hike - NASDAQ, S&P500, SOXL, ENPHJust a quick rehash on the few that I have been closely following of late, especially after the Fed raised rates 0.75%, as expected; but the important bit was in the narrative (not analyzed here).
The NASDAQ futures had 11,900 simply broken through, and the next day followed through with a slight gap down, as global markets react.
The S&P500 ETF, SPY, similarly broke down below 388, and closed at its low of the day.
Both have bearish candlesticks with momentum, and MACD is supportive of further downside, likely to visit the last low (and possibly exceed) within the coming weeks.
In the same light, SOXL (as covered previously) had all its bullishness invalidated since last week. There is a slight divergence with the MACD struggling to maintain a slight bullish stance, but the candlestick is just pain bearish, period. This is highly likely to exceed its previous low and go below 10.
ENPH, the fascinating one, is amazingly holding at the lower end of the recent range. It appears to most likely break down to the lower end of the lower range, about 275, to meet the 55EMA. Yes, this is one that is above its daily 55EMA. MACD however, is less bullish with a cross under its Signal line. 235 is a critical support, after 255 (if it is to hold its bullish case).
Overall, bearish as previously expected, to the last low for the major indexes and the corresponding ETFs.
In the wider scope (not shown here), the USD futures is getting a pump, and both TIP and TLT may be bottoming out. The latter being some deviation from the recent trend where almost all drop except the USD.
SPY Daily analysis using TD Setup and MACDAs a follow up to the SPY Hourly analysis by TD Sequential Setup and MACD...
Here is the similar analysis on the SPY daily chart.
Clearly, does not look good.
Here is why...
The Buy Setup in late August (red box) did not breach the TDST of 401. This actually means that the primary trend is bullish. Hence, a TD Flip on 7 September and the start of a TD Sequential Sell Setup appeared at that time to be a legit bullish trend. However, on 13 September, after an inflation report release, the markets got spooked and a significant Gap Down and Run occurred. This was a TD Flip that truncated the opposing setup too. It also failed the Hull EHMA lines, as well as formed the third Lower High.
Now, it appears that a new TD Sequential Buy Setup is underway and the last low at 388 can be expected to be broken down for a revisit of 360-365.
So, watch the critical 388.
MACD is heading further down as indicated, and is aligned to the downside scenario.
Reminder that Friday is Quad Witching and volatilty prevails during QW.
Stay safe and well, watch out for increased volatility and be nimble!
If/Then Rate Hike SceneriosIf 100 bps, then break below support & cont. down.
If 75 bps, then remain above bottom support.
If 75 bps & hints of future pivot, then back into triangle with breakout imminent.
If 50 bps, then To The Moon!
Stocks Brace for the FOMCThe small rally we saw in stocks yesterday was quickly batted down. We managed to make a run for 3909, which was our target and lower bound of some congestion from earlier this month. However, we promptly rejected that level, as anticipated, and immediately sought support again at lows just above 3825. The markets, usually quiet before an FOMC, reacted out of one last burst of fear for the impending meeting today at 2PM EST. It is expected that we will get yet another 75 bps rate hike, with some saying it could be as high as 100 bps. After this, it is likely that we see a relief rally that could test the 3900's again, with 4009 being the ultimate target for a rally. If we sell off again then we should have support at the base of the 3800's.
Stocks Pivot, Await FOMCStocks caught a nice pivot from lows just above our level at 3827. We saw some volume come through and were able to break past a relative low at 3887. Currently a bit of a retracement is taking us below that level again. We won't expect much action from the markets before the FOMC, so current levels are likely to hold. Watch for support at 3827 again, and resistance somewhere around 3909 or 3928 if we can make it that far.
S&P500-Potential for relief run to fill gap at 0.618 ,bot deployTo make this strategy clear , the weakening dollar in "SHORT" term will result in a side ways to upwards markets.
This will lead to volatility in crypto markets which are optimal conditions to deploy trading bots within a price range.
The S&P500 being the leading indicator for this strategy .Considering the Gap @ 0.618fib and a possible short term Dollar cool off ,its probable it gets filled. I can imagine plenty short liquidations above $4000 which will be a nice stop hunt into that price area.
P.S. This is by no means a long signal as fundamentals and economic data is scary AF. Its to deploy bots with risk mitigation when conditions are conducive.
There is no sign of DXY losing momentum in mid to long term and we will see S&P500 much much lower so ensure safety.
Stocks Brace for Fed Rate HikeStocks are edging lower yet again, as investors price in a potentially historic rate hike. In order to combat the highest inflation we have seen in 40 years, most agree that we are looking at a 75 bps rate hike , but some suggest it could be as high as 100 bps . However, multiple indicators suggest we are in the thicket of a recession, and after this rate hike, they are likely to pivot to a more dovish stance, with maybe one more rate hike in the tank before they're forced to start cutting again. The S&P has edged lower and dow futures have plunged more than 200 points as the market brace for the tightening. The S&P is testing 3848, and the Kovach OBV is still bearish. We do appear to be seeing some support here confirmed by green triangles on the KRI. If we can pivot, 3909 will be the next target, but we don't anticipate to break that any time soon. If we fall further, we should expect support at the base of the 3800's.