Would you be surprised if we saw '00/'08 highs?Look for a failure of the price block highlighted, similar price action noted in the previous highs of 2000 & 2008.
We see the relative strength fade as price continues to rally creating regular bearish divergence, after the break of the trendline hidden bearish divergence develops as the RSI shows higher highs and price continues to fall.
2000 and 2008 were screaming at us to be short. Will 20018/2019 do the same?
52-week Moving Average displayed.
Short until a break of the ATH proves us wrong.
Sp500short
S&P - Bears are in ControlDear Traders,
As predicted before, the S&P's price went down. As you can see my red ''support line'' got breached and in my opinion, we are now heading towards the 200 ema on the 4hr chart. Bears are in control. Next stop is the 200 ema at 2876$. It held last time it touched it, let's see how that works out this time.
S&P 500: May You Live In Interesting TimesThe SPXUSD (the perpetual contract of the SP 500) is somewhat of an indicator for domestic US investor sentiment. In comparison, I consider the DJIA to be an indicator of foreign capital flows to the US.
The US appears to be triggered by the nomination of a Supreme Court judge, or rather, the slander and innuendo associated with the nomination... and despite all the howling and nashing of teeth, the S&P500 goes nowhere but up, for slander and innuendo cannot be traded.
I mention this because US political instability is a fundamental headwind. The Supreme Court nomination is a flashpoint that reveals the deep polarization, unfocused discontent, and indoctrination in the US. Meaning, if Kavanaugh is appointed, investor sentiment will be maintained, as it represents a win for Trump, and a win for Trump is a win for business. But, a lot of people will not accept this nomination, and it will only deepen political contention. Any threat to Trump may impact the markets negatively.
But for now, the markets are optimistic. Was today the dip to buy? It was trendline and horizontal confluence. I would like to see the lower parallels tested for an even better buy entry.
As traders, the best we can do is do what needs to be done, when it needs to be done. In a bull market, that means buying the dip. If the lower parallel is taken out on a closing basis, I will naturally readjust. For now, no damage has been done.
I find it troubling that daily, weekly and monthly stock/rsi are flashing bearish divergence. Bear div can always be negated, but this needs to be monitored.
In short, stay long. Buy dips. Re-adjust if levels are taken out to the downside.
SP500 shortHi trader's,
In Thursday's trading session I will be looking for a short in the SP500. We might start with a push higher but I expect that to be part of the corrective structure which is currently unfolding.
My focus will be on the sell-trade and I will not participate in any potential buy set-ups.
This means that I will be looking for minor flags then execute the sell.
Below; 15 min tf which shows a possible scenario if we see some bullish momentum.
S&P 500 overlaid with Shiller PE ratioHello all, thanks for viewing.
After re-reading William Poundstone's "How to Predict the Unpredictable" I thought I would chart the Shiller PE ratio on the S&P 500. I did this because I have general feeling is that things are a little over-extended.
In his book, he points out that in the past 130 years, if people in the US stockmarket had sold their stocks (and invested in cash instruments) when Shiller P/E rose above 28 and bought in again when it dipped below 13 would have avoided the 2 most significant market crashes in that time, thus magnifying their year-on-year returns. He also discussed other PE limits, which involve more active trading and greater returns.
Please forgive the inaccuracy of my overlay, I tried to place the data points as accurately as possible for February and August each year (www.multpl.com). From this data PE rose above 28 in December 2016 / Jan 2017 and has remained above that level. My knowledge of equities isn't that strong but I do understand that when PE ratios grow, there is less money to share among investors and dividends shrink. When PE ratios get towards the higher end, investors may come to rely more on growth in capital gains as the main source of returns. This may add more volatility into the market. Increased volatility has been detected since 28 was exceeded: www.marketwatch.com If competing investments come to be more attractive due to increased interest rates and / or low risk instruments then there may be capital outflows from equities.
Maybe I am a "glass half empty" kind of guy but when I hear multiple reports of "the longest bull-run in history but also read parallel analysis that the market is undervalued (www.marketwatch.com) my first reaction is to get sceptical.
Disclaimer (for those that need one); I am not a professional, a financial adviser, or your Mom, so please do your own research. This is published for my own education and I have no position in the US market and am not considering taking one. The market is currently in an upswing. There is no way of telling how long the market will continue up for.
S&P 500 Index Set To Cool Down For Labor DayBased on derivative analysis. I am projecting Minute wave 3 just completed and we have entered the corrective wave 4. The wave should end over the next 2.5 trading days. I project the bottom will occur within the first 2.5 hours on September 4, 2018. The bottom should also occur between 2870.91-2886.50. All of these targets are based off of the moves that have occurred over the course of Intermediate wave 3. This wave began at the end of June.
My projection is wrong if the index breaks above the recent record high of 2916.50 before the end of trading on Friday August 31. If this occurs, We are still in Minute wave 3 (and that top is most likely about to occur).
I am closely monitoring the index. Intermediate wave 3 will end in September, most likely near the end of the month. Intermediate wave 4 should end no later than the second week in October. The final wave and major market top for now should occur within the first two weeks of November and potentially a result of something below.
When the US markets fall, I would attribute it to US election results (perception of potential impeachment attempts), failure to reach trade deal with China, a major geopolitical conflict/war, North Korea issues, or failed passage of the already agreed upon trade deals with the EU, Mexico, or Canada.
S&P 500 bearish for a few days?This is a great opportunity with 1:4 risk to reward ratio to short this market with a fair amount of reasons (indicated on the chart). A classic mistake is trading countertrend hence this could follow the parabola and shoot to new highs fairly easily.
This is just an idea, not advice! Good luck in trading the tough markets everyone!!
SP500 at end of growth? huge collapse to come? Long term vision When I fit the chart in the Fibonacci sequence, I conclude that it exactly fits in the sequence as how I show it here and as how my experience has learned me that charts behave concerning the Fibonacci sequence.
- The price went up from '0' to 700 points between 1980 and 1996 = Fibonacci 0% to 78,6%
- Than the price went further to 1200 points between 1996 and 2012 = Fibonacci 78,6% to 61,8%
- The growth continues further to 1600 points between 2012 and 2013 = Fibonacci 61,8% to 50%
- The growth continues further to 1900 points between 2013 and 2014 = Fibonacci 50% to 38,2%
- The growth continues further to 2300 points between 2014 and 2017 = Fibonacci 38,2% to 23,6%
- And the price broke 23,6% so it will continue rising till the sequence has ended!! and that is 3000 points!
> What will happen when 3000 points is reached? There are two options:
1: The price keeps on rising. Than potential = 4800 points !
2: The price collabs and retraces. Than potential = to fall back to 2300 / 1900 / 1600 / 1200 / 700
TARGET 1 NOW: 3000 points and take profit. So, short- term is LONG!
THAN WAIT
THAN MAKE A NEW PLAN: LONG OR SHORT for the long- term
Thank you for following and Succes with trading !
Richard from Rich.Exclusive.Trading
Sell on SP500- Hi everybody!There will be a trend reversal!
- Why do I think so?
- At the moment there is a figure in the head and shoulders of something that we can not ignore because it can be crucial in the possible reversal.
the volume seems to be in disagreement with the price something that also shows a reversal!
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Entry Price: 2824.40
SL: 2840.00
TP1: 2792.00
TP2: 2740.00
Markets Set To Fall For Remainder Of Month; S&P 500 DropI was slightly premature in my previous analysis. My data was lacking and I took a leap. The data is finally in and the drop will occur as projected. We will watch the market drop for the rest of the month before it flies high into the fall. The pink box with the black outline is the projected bottom for the coming drop. My more realistic zone is above the trend line (purple background with thick red border).
The projection box has the bottom between July 27 and July 31. The bottom should occur below 2797.42 and above 2764.90.
My zone to watch has the bottom no lower than 2781 if the trendline acts as support. Possible flirtation and a quick drop below this support is always possible.
Look to a drop in this area as a great buying opportunity.
EXTERNAL FACTORS
The external factors which may lead to this drop could be weaker than expected outlooks during the next week of earnings season. Lack of trade negotiations between the United States, its allies and China could also lead to the quick drop.
After this drop, I expect the market to gain 9-11% through October 2018. This could be due to trade deals finally panning out.
Stay tuned for more projections. I am preparing for the major market drop that is coming. I will have more projections and articles out detailing the specifics and the stocks that forecast market tops before they occur. I have a great one that has been accurate since 1987!
E-mini S&P500 in phase of uptrend. (26/07/2018)Sure the "Flat" model and Bull's "Cumulation Balance" on ES is over.
Near month, Bulls can retest & breakthrough the historical peak 2884.50
I decisively, take a long position for 2900.00;
"Short term target": 2900.00 - 3000.00.
"Middle term targets": 3200.00 - 3300.00;
"Long term targets": 3400.00 - 3500.00.
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S&P 500 - There's Order In The UniverseHow many lines does one need to describe the markets?
Well, if you know about the universal law of Action & Reaction, there's not much to draw.
Keep it simple, but know what you draw and what to expect from.
P!
...don't miss the ForkTrading BLUEPRINT on my website...learn to earn.
SP500 - Where will it go?Hello traders! Let's see SP500 in daily timeframe! We can clearly see that's moving inside a descending triangle , there might be a breakout of the triangle but still not confirmed , that's probably a fakeout. So be careful and wait for a strong confirmation daily or better weekly , might lose some pip but would be a safer trade , that's just my opinion don't take that as a financial advice.
SP500 CAN RISE TO 2800You can see that SP500 is trying to rise to 2800 points but there is a strong resistence in 2738.
But the pattern working right now is showing the posibility of break the 2738 resistence and rise to 2793 (at lest) or few more until 2800 points.
Support Line is going to third confirmation and if this confirmation work, then is so very probable that SP500 rise to 2800 points.
The you can go in first stage with PUT Future Options to 2700 strike, sold in the first droping, wait for a correction of the drop and buy more puts and wait for new drop and sold your puts.... and go on, again and again. When SP500 will be near to 2650, stop buy puts and buy Calls. It can be work well.
But, first watch what happen Sunday in the night or Monday in the morning.
Bearish Reversal on S&PMirror Channel Down pattern developing on 1D as 2,741 has been priced as the latest Lower High (ADX = 21.036) on the current 2018 bear cycle. 4H has already initiated its Channel Down (Highs/Lows = -10.9821, BBP = -14.4680) with only MACD = 8.280 supporting from further downtrend. Expected targets are the supports (2,697.60 and 2,680.50 the most immediate).