Scenario on s&p 500 13.12.24We have two scenarios for now, the first one is that if we want to get to the new ath, we need to keep the level around 6060, if that doesn't happen and we break below this level, it is possible that there will be a deeper correction, the first level is 6000, the deepest so far is 5880.
S&P 500 (SPX500)
S&P 500 Rally: Why a 5k Target Might Be More Likely Than 7kSince November of last year, the SP:SPX has surged by 50%, and if we look at the gains from this year alone, we're seeing around a 30% increase. Additionally, the rise from August is 20% which is significant in just five months.
Considering the rapid pace of these increases, especially for such a major index, it gives me the impression that the S&P 500 may be overstretched.
Statistically, such strong rallies either follow a deep bear market or precede a significant pullback.
Since we haven't experienced a strong bear market recently, I believe a correction could be on the horizon.
Technically, the market remains in an uptrend, but the price action from August has been in steps. This type of movement often signals distribution and a potential reversal.
In conclusion, while a new all-time high by the end of the year is almost certain, I'm not overly optimistic about the long-term outlook.
A pullback to around 5,000 seems more likely to me than a rally to 7,000.
Why on Earth anyone invests in the Australian Shares? (SPX)The last 16 years. The US S&P 500 index (in red) Vs the Australian All Ordinaries index. The US broad market index up by 607%, the Australian index up by 58%. The US S&P 500 index is a broad measure of the top 500 companies in the US, and the All Ordinaries likewise from the largest 500 companies listed in Australia. The US represents about 25% of Global GDP Vs Australia at 1.6%. The US S&P500 index companies also earn about 40% of their earnings from outside America (due to their Global reach). Their companies also lead in tech, banking, defense etc. Why does anyone invest solely in the Australian share markets? The Australian index is very narrowly weighted to the big 4 banks (mostly leveraged on Australian residential real estate), and the large miners (leveraged on the commodity cycle). Both very narrow, non-diversified risky strategies, and clearly over the long term a crap investment compared to the breath of risk and performance outcomes of the US multinational giants of expansion and leading edge innovation.
SPX500 forming a Double Top pattern, will it keep going up?Technical Analysis:
================
SPX500 has formed a noticeable double top technical pattern. If it respects the double top pattern the price should touch around 5700. But if it keeps climbing the 6000 may become another support level.
Fundamental Analysis:
===================
1) Israel war seems to be calming, which should reduce the uncertainty and boost the stock market
2) Russia Ukraine war is intensifying as a result of latest attacks. This war has potential to undermine all other good news and could go with the double top (technical analysis)
3) Santa Claus Rally can boost the stock market in coming weeks followed by correction in Jan 2025
===== Happy Thanks Giving to all the traders ====
SPY/QQQ Plan Your Trade For 12-16: Inside BreakawayThis video highlights what I believe will be a rotating topping pattern setting up in the SPY/QQQ over the next 3-4+ days.
Traders should move away from risk headed into Christmas and the end of 2024.
Gold and Silver will likely make a move higher over the next 5+ days - attempting to recover lost ground from last week's selling.
Bitcoin rallied to key resistance and will likely move into a consolidated range (again).
This is the time to pull capital away from risks and sit tight through the Inauguration. I believe we'll be seeing lots of day trading opportunities with volatility - but I also believe the markets are setup for a downward price swing headed into the Inauguration.
Buckle up.
Get some.
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S&P is Shaping a Bull Flag While Awaiting the FED DecisionLast week was characterized by increasing selling pressure that hindered upward price progression but failed to trigger any substantial pullback. The market has not even retested the previous consolidation zone ( 598-601 ), which highlights the weakness of the sellers.
Looking at the daily chart, the recent price action resembles a bull flag, favoring a continuation of the upward trend. For sellers to demonstrate their strength, they must not only break this pattern to the downside but also breach the 598 support level and drive the price further down to 594 .
Much will depend on the Federal Reserve's interest rate decision this week, alongside the release of key economic data. The most favorable outcome for the bulls would be a 0.25% rate cut. Any other scenario could spark concerns—either about an impending recession (if the cut is larger) or about a prolonged high-interest-rate environment (if the cut is absent).
The market outlook remains bullish; however, the current price level is not ideal for new long positions. Buyers would be better served by waiting for a more meaningful pullback (e.g., to the 600 level), provided it is not driven by a negative shift in economic sentiment.
SPX500 H4 |Potential bullish bounceSPX500 is falling towards an overlap support and could potentially bounce off this level to climb higher.
Buy entry is at 6,033.76 which is an overlap support that aligns with the 23.6% Fibonacci retracement level.
Stop loss is at 5,950.00 which is a level that lies underneath an overlap support and the 50.0% Fibonacci retracement level.
Take profit is at 6,121.24 which is a level that aligns with the 127.2% Fibonacci extension level.
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Nightly $SPX / $SPY Predictions for 12.16.2024🔮
📅Mon Dec 16
⏰9:45am
Flash Manufacturing PMI
📅Tue Dec 17
⏰8:30am
Retail Sales m/m
📅Wed Dec 18
⏰2:00pm
FOMC Statement
📅Thu Dec 19
⏰8:30am
Final GDP q/q
Unemployment Claims
📅Fri Dec 20
⏰8:30am
Core PCE Price Index m/m
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Bullish momentum to extend?S&P500 (US500) is falling towards the pivot which has been identified as a pullback support and could bounce to the 1st resistance.
Pivot: 6,006.92
1st Support: 5,866.31
1st Resistance: 6,157.58
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#202450 - priceactiontds - weekly update - sp500 e-mini futurestl;dr
sp500 e-mini futures: Same as for dax. Shallow two-legged pullback to the moving average is a perfect buy signal once we trade above 6087 again. I have targets at 6300 or higher and the chart is as clear as it gets. Only a daily close below 6000 would change the outlook.
Quote from last week:
comment: Chart is clear, do not look for shorts until we see bigger selling pressure. Current structure has a lot of room to the upside, if you like it or not. My tl;dr covered most of it.
comment: Nothing has changed from last week. Market went nowhere and it has formed a perfect very shallow two-legged pullback to the ema. Above 6080 it’s a clear buy signal and I can see this going for 6300 into year end. No bearish thoughts, since bulls are in full control and best bears could do last week was a 70 point pullback. That is as weak as it gets.
current market cycle: Bull trend - very late
key levels: 6000 - 6300
bull case: Chart is still the same and structure did not change. Once we break above, long it for 6150+. Nothing more to say about this.
Invalidation is below 6000.
bear case: Dax outlook covers also sp500 and nasdaq. Bears are not doing anything and until they come around big time, only look for longs. Bears need a daily close below 6000 for me to reevaluate.
Invalidation is above 6120.
outlook last week:
short term: I won’t put out a bullish outlook after such a climactic rally without any decent pullbacks. You can only go wrong here. Neutral until bears come around and if the rally continues, it will be without me. If bears come around, first target is obviously 6000 and there I expect another bounce before market decides if it wants to go below 6000 or not.
→ Last Sunday we traded 6099 and now we are at 6055. Good outlook.
short term: Neutral until we break above 6080 and then 6120. Above 6120, market has to find a top and that could be all the way up to 6300.
medium-long term - Update from 2024-12-15: Will write a new outlook for 2025 next week.
current swing trade: None
chart update: Removed the potential bearish two-legged correction. Only bullish targets remain for now.
S&P500 INDEX Technical Analysis & Outlook Ahead of Fed DecisionS&P 500 Technical Analysis
The market is approaching a key week with potential volatility driven by the Fed Rate Decision and GDP data. Here's a breakdown of the scenarios:
Bullish Scenario: Continuation of the Uptrend:
Key Levels:
- Breakout Support: 6022
- Pivot Point: 6058
- Resistance Line: 6099 and 6143.
Conditions for Bullish Continuation:
- Price must remain above 6022 (Breakout Support Line).
- Stabilization above the 6099 resistance will confirm upward momentum toward 6143 (next resistance).
- This move would support a continuation of the uptrend toward a new ATH.
Fed Rate Impact:
- If the Fed cuts rates by 25 bps, the market may interpret this as dovish, fueling bullish sentiment and risk appetite.
Bearish Scenario: Continuation of Downtrend:
Key Levels:
- Breakout Support Line: 6022
- First Support: 5971
- Next Supports: 5932 and 5863.
Conditions for Bearish Reversal:
- Price must break and close below 6022 on a 4-hour candle.
- A break below this level opens the door to the next support at 5971.
- Further bearish momentum could drive the price toward the Strong Support Zone around 5863.
Fed Rate Impact:
- If the Fed holds rates steady at 4.75% or signals hawkish intentions (e.g., no future rate cuts), bearish momentum may build due to reduced liquidity expectations.
Trend Outlook:
- Uptrend Continuation: Above 6022 and confirmed by a breakout above 6099.
- Downtrend Continuation: Below 6022, targeting 5971 and lower levels.
Key Summary:
Bullish Confirmation: Hold above 6022 and break above 6099.
Bearish Signal: Break and close below 6022, with lower targets of 5971 and 5932.
Fed & GDP Impact: Monitor Fed decision for rate cuts (bullish) or no change (bearish).
S&P 500 Daily Chart Analysis For Week of Dec 13, 2024Technical Analysis and Outlook:
During the trading session this week, the S&P 500 index has exhibited a consistent steady to a lower trajectory, progressing towards our newly established support target of 6034. There remains the potential for a further decline to the subsequent Outer Index Dip level at 5980. Conversely, a notable upside movement via the previously retested Key Res 6090 level is anticipated, which may facilitate a rally to the Outer Index Rally target of 6123; this development will likely pave the way for the next phase of the bullish trend.
SPX × US10Y: A Signal for Market Tops and Economic Shifts1. Combining Equity Levels and Yield Sensitivity
SPX (S&P 500) reflects equity market strength and investor sentiment. When SPX is rising, it typically indicates optimism or strong earnings growth expectations.
US10Y (10-year Treasury yield) reflects the cost of capital and inflation expectations. Rising yields can signify tightening financial conditions or economic overheating.
When you multiply these two metrics, the product magnifies the impact of simultaneous market exuberance (high SPX) and rising yields (high US10Y). A very high SPX × US10Y value could indicate a market environment where valuations are stretched, and higher yields are increasing the cost of capital—often a precursor to market corrections.
2. Historical Patterns
In prior market tops, both equity valuations (SPX) and yields (US10Y) often peak together before significant corrections:
Dot-Com Bubble (2000): SPX was highly elevated, and rising yields signaled an end to loose monetary conditions.
2007-2008 Financial Crisis: SPX was at record highs, and US10Y yields were climbing, reflecting tighter monetary policy.
2021-2022 Post-Pandemic: SPX hit record highs, and yields started to rise sharply as inflation surged, leading to a market correction.
The SPX × US10Y value tends to peak during these moments, providing a warning signal of market excess.
If you are using the SPX × US10Y (multiplication) instead of division, it can still serve as a market indicator, though the mechanics are slightly different. Here’s why the product of the S&P 500 and the 10-year Treasury yield (SPX × US10Y) might be relevant for predicting market tops:
3. Economic Logic Behind the Indicator
A. Reflects Cost of Capital
Rising US10Y yields increase the discount rate used to value stocks. High SPX × US10Y suggests equities are vulnerable to revaluation if yields continue to rise.
B. Overheating Economy
High SPX × US10Y often coincides with an overheating economy, where inflation pressures push yields higher, while equities are driven by optimism. This imbalance can quickly reverse if monetary tightening occurs.
C. Peak Growth Phase
A peak in the SPX × US10Y value might signal the economy is at the late stage of the business cycle, where growth slows, and equities face headwinds.
4. Why It May Predict Market Tops
Valuation Excess: A high SPX × US10Y product reflects elevated valuations combined with tightening financial conditions.
Transition to Risk-Off Environment: Rising yields make bonds more attractive relative to stocks, potentially triggering equity outflows.
Fed Policy Influence: If yields are rising due to Federal Reserve tightening, equity markets often react negatively as borrowing costs rise and liquidity is withdrawn.
S&P Head and Shoulders by January - Knees and Toes by February?The S&P 500 has recently formed a solid left shoulder and is now halfway through developing the head of a potential Head and Shoulders reversal pattern and divergence suggest we could form the right ear this week. This classic chart formation is often a sign of an upcoming trend reversal, typically from bullish to bearish. If the current pattern continues to unfold, the index could complete the right shoulder by January, signaling a shift in market sentiment. The key to confirming this reversal will be a break below the neckline, which is the support level formed between the left shoulder and head (aka the pearl necklace). Traders will be watching closely for any signs of weakness in the market as the price approaches this critical level. While the pattern isn't set in stone, the possibility of a bearish trend emerging by early next year is something investors should keep an eye on. If the pattern completes, the S&P could experience a significant pullback, so keep your eyes peeled because it could get bananas. A move above the current zone could cancel out this pattern from forming.
Chance of forming: <50%
SPDR Sectors Rolling Down as Anomaly Event Sets UpSPDR sectors appear to be forming a Head-n-shoulders pattern after the US elections.
It appears the markets are stalling into a congestion phase - possibly leading to my Anomaly breakdown event.
This video will help you understand how the financial and real estate sectors could collapse to deflate the current market trend.
Get some.
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SPY/QQQ Plan Your Trade For 12-13 : Carryover In ContertrendToday's pattern is a Carryover in Counter trend mode.
As you'll see in today's video, I'm highlighting many various new features and techniques to help traders understand price movement and context related to trading opportunities.
We need to understand how to target opportunities and how to avoid risks.
I had a long conversation with a subscriber yesterday - he's struggling to understand how to trade efficiently.
Trading is all about jumping on opportunities when they hit and trying to avoid risks and overtrading.
I see so many people try to trade everything that ticks - even when they should be sitting on the sidelines and waiting for better opportunities.
If you want to gamble with your trading account - throw a dart and pick BUY or SELL (RED or BLACK).
If you want to learn how to consistently target the best trade setups, then learn to WAIT for the best setups, execute your trades, then PULL PROFITS/EXITS as quickly as you can.
You should be able to trade only 2 to 3 times a day and do very well - if you don't get trapped in trying to WISH a trade into profits.
Remember, trading is unlike anything else you've ever tried. The more time you try to WISH something to happen, the more likely you are taking on excessive risks.
I'm working on new tools to help all of you develop better skills.
Get some.
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SPY/QQQ Plan Your Trade For 12-12: Breakaway PatternToday's video goes into detail related to the general SPY/QQQ trending and the continued potential for a price Anomaly Event.
It is likely that the markets continue a Santa Rally phase - attempting to push higher throughout the end of 2024 and into 2025.
I want everyone to understand that the anomaly event I keep suggesting may happen is an outlier event. It would be driven by some news, political, financial or other type of market event.
If that event does not happen, then the markets will likely continue to push higher and higher.
So, remember, the markets want to push higher into the typical Santa Rally. My Anomaly event would be a potential outlier event - driving a moderate pullback in price.
Gold and Silver should move into a moderate topping pattern today - possibly pulling downward a big. This would be a goo setup for the next rally phase higher. That rally may come tomorrow or into early next week.
Bitcoin is trapped within a consolidation range. The rally yesterday was nice to see, but right now we are seeing Bitcoin struggle below resistance. So, we still need to be cautious about rolling downward. Yet, the general trend for Bitcoin right now is upward.
Get Some.
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FORECAST UPDATES: Post CPI Results. Did We Get The Bias Right?Wednesday Dec. 11, 2024.
This is the Mid-Week Progress Report. Checking the accuracy of the Weekly Forecast and the Updates video posted yesterday.
Enjoy!
May profits be upon you.
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$JOBY: Strategic Entry into the eVTOL MarketI spend time researching and finding the best entries and setups, so make sure to boost and follow for more.
Joby Aviation, Inc. ( NYSE:JOBY ): Strategic Entry into the eVTOL Market
Trade Setup:
- Entry Price: $6.91
- Stop-Loss: $3.61
- Take-Profit Targets:
- TP1: $12.76
- TP2: $21.08
Company Overview:
Joby Aviation, Inc. is a leading player in the emerging electric vertical takeoff and landing (eVTOL) aircraft industry. The company focuses on developing zero-emission aircraft to revolutionize urban air mobility. With substantial investments in technology and partnerships, Joby aims to launch commercial operations by 2025.
Earnings Reports:
- In Q3 2024, NYSE:JOBY reported a net loss of **$476.86 million**, as expected for a pre-revenue company heavily investing in research and development.
- Total cash reserves stand at **$1.1 billion**, ensuring sufficient runway for operational and developmental goals.
Valuation Metrics:
- Market Cap: **$6.54 billion**.
- Given its pre-revenue status, traditional valuation metrics like P/E or P/B are not applicable. Instead, the company is valued on its growth potential in the emerging eVTOL market.
Dividends:
- NYSE:JOBY does not pay dividends, prioritizing reinvestment into its development and expansion plans.
Market News:
- Recent announcements include plans to raise **$300 million** through equity sales, strengthening financial resources ahead of the anticipated commercial launch.
- Joby also received its first production airworthiness certificate, a critical milestone toward FAA certification.
Analyst Ratings:
- Analyst consensus: **Moderate Buy**.
- Average price target: **$8.35**, reflecting mixed sentiment due to the stock’s volatility and developmental stage.
Risk/Reward Analysis:
With a stop-loss at **$3.61**, the downside risk is approximately **47.75%**, while the upside potential to TP1 ($12.76) offers a reward of **84.66%**. TP2 at **$21.08** provides an extended reward potential of over **200%**. This setup appeals to long-term investors with high-risk tolerance.
Conclusion:
Joby Aviation represents a compelling opportunity for growth investors looking to capitalize on the eVTOL market's potential. While the stock's volatility and pre-revenue status introduce risk, its significant milestones and industry positioning make it a high-reward prospect.
When the Market’s Call, We Stand Tall. Bull or Bear, Just Ride the Wave!
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Traders should conduct their own due diligence before making investment decisions.
($WW): Strategic Entry into Weight Management SectorI spend time researching and finding the best entries and setups, so make sure to boost and follow for more.
WW International, Inc. ( NASDAQ:WW ): Strategic Entry into Weight Management Sector
WW International, Inc. (WW) is a stock in the USA market. The price is 1.61 USD currently with a change of -0.04000 (-0.02424%) from the previous close. The intraday high is 1.69 USD and the intraday low is 1.555 USD.
Trade Setup:
- Entry Price: $1.29
- Stop-Loss: $0.6800
- Take-Profit Targets:
- TP1: $2.28
- TP2: $3.75
Earnings Reports:
In the second quarter of 2024, WW International reported disappointing results, leading to a 1.9% drop in stock price into record-low territory.
Valuation Metrics:
The company's market capitalization stands at approximately $109.41 million, with a Price-to-Sales Ratio of 0.14, reflecting the market's valuation of the company's sales.
Dividends:
WW International does not currently offer dividends, focusing instead on reinvestment into the company's growth and restructuring efforts.
Market News:
Recent executive changes include the appointment of Felicia DellaFortuna as the new Chief Financial Officer, effective January 1, 2025. Additionally, the company has introduced compounded GLP-1 obesity treatments to its services, aiming to provide accessible and affordable clinical weight management solutions.
Analyst Ratings:
WW International has received a consensus rating of 'Hold,' based on 3 buy ratings, 2 hold ratings, and 1 sell rating.
Risk Management:
Implementing a stop-loss at $0.6800 helps mitigate potential losses, while the take-profit targets at $2.28 and $3.75 offer favorable risk-reward ratios. Given the stock's volatility and recent market developments, strict adherence to these levels is crucial.
When the Market’s Call, We Stand Tall. Bull or Bear, Just Ride the Wave!
*Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Traders should conduct their own due diligence before making investment decisions.*