S&P 500 Inverted Head and Shoulders Since I am seeing top authors posting here what I have seen a week before already, I will take the grace and let you know about it as well.
Its simple, its obvious, I don't have to say more at it, simply take a look.
Head and shoulders is a reversal pattern and requires a RED left side. We have it, we are reversing the short term trend, I am longing this one on the break of the neck-line.
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Spxlong
Stock Trade Plan - 07 November 2018
The trade idea for today is an ETF with ticker symbol SPXL that trades the S&P 500 3x, it is a leverage S&P 500 a 3x version of SPY. It can be compared to SPY.
This is a straight bullish trade;
Entry is at $48
Stop is at $46
Target is at $55
The risk reward is a ratio of 7:2, which is a great reward risk ratio. You can trade options for December 2018 in the money with open interest at $45 (4.60/$5).
Let me know what you think about it in the comment box below
SPX approaching support, potential bounce! SPX is approaching our first support at 2591 (horizontal swing low support, 100% Fibonacci extension) where a strong bounce might occur above this level, pushing price up to our major resistance at 2709 (horizontal pullback resistance, 100% Fibonacci extension, 38.2% Fibonacci retracement).
Stochastic (89,5,3) is also approaching support and we are seeing a bullish divergence where we might see a corresponding bounce in price.
SPX approaching support, potential bounce!SPX is approaching our first support at 2678 (horizontal swing low support, 61.8%, 100% Fibonacci extension , 61.8% Fibonacci retracement ) where a strong bounce might occur above this level pushing price up to our major resistance at 2791.8 (horizontal overlap resistance, 100% Fibonacci extension). Stochastic (55,5,3) is seeing a bullish divergence and also approaching support we might see a corresponding rise in price should it bounce off this level.
SPX is approaching resistance, potential drop! SPX is approaching our first resistance at 2810.4 (horizontal overlap resistance, 50% Fibonacci retracement, breakout level, 61.8% Fibonacci extension) and a strong drop might occur below this level pushing price down to our major support at 2680.5 (horizontal swing low support, 61.8% Fibonacci retracement, 61.8%, 100% Fibonacci extension). Ichimoku cloud is also showing signs of bearish bias in line with our bearish bias.
RSI (34) is also seeing a bearish exit and we might see a corresponding drop in price.
SPX approaching resistance, potential drop! SPX is approaching our first resistance at 2792.6 (horizontal overlap resistance, 38.2% fibonacci retracement, breakout level) and a strong drop might occur below this level pushing price down to our first support at 2699.0 (horizontal swing low support, 100% fibonacci extension, 61.8% fibonacci retracement). Ichimoku cloud is also showing signs of bearish pressure in line with our bearish bias.
RSI (55) is also seeing a bearish exit and we might see a corresponding drop in price.
SPX approaching resistance, potential drop! SPX is approaching our first resistance at 2792.6 (horizontal overlap resistance, 38.2% Fibonacci retracement, breakout level) and price might potentially drop below this level to our major support at 2699.0 (horizontal swing low support, 100% Fibonacci extension, 61.8% Fibonacci retracement). Ichimoku cloud is also showing signs of bearish pressure in line with our bearish bias.
RSI (34) is also seeing a bearish exit and we might see a corresponding drop in price.
SPX approaching resistance, potential drop! SPX is approaching our first resistance at 2792 .2 (horizonal overlap resistance, 23.6% Fibonacci retracement) and a strong drop might occur below this level pushing price down to our major support at 2699.0 (horizontal swing low support, 100% Fibonacci extension, 61.8% Fibonacci retracement). Ichimoku cloud is also showing signs of bearish pressure in line with our bearish bias.
RSI (89) is also seeing a bearish exit and we might see a corresponding drop in price.
Future Target Extensions on SPX using Wicks and ClosesJust posting this so I can refer back to it later. These are the extension targets for SPX based on the future price target projections pulled from the January 26th peak. The index broke out the descending triangle so at the point of the breakout I have the High to Low measurement in yellow, and the High Close to Low Close measurement in bright blue (with the extensions in matching colors). *Note - Failed pattern breakouts tend to deflect at these extension levels, so just because the measured target is high, doesn't necessarily mean that the price will reach this level.
BITCOIN & STOCKS - CORRELATED ? #btcusd #S&P #movingXwaterHi, Followers and Friends !
The correlation between BTCUSD (BITCOIN) and stocks - SPX - has been showing a consistency, only on May it has begun to splinter.
Before then, price movements were following. When the cryptocurrency reached records in December, the S&P 500 reached its own a month later.
As S&P sold off in February and March, so did bitcoin.
There was a big drop on S&P volume, when Bitcoin was about to Moon, as you can see on the thunder symbols.
Although, a visible split has occurred on May, as you can see on the Bitcoin symbol.
What Now? Game Over for BTC? Money left BTC and is now going all in to S&P?
Well, volume on Cryptocurrency has gone very low and the correction has scarred out many investors. Specially Long Term Investors.
Until Bitcoin finds it's support and shows that is ready to grow consistently, money should go to S&P.
For now S&P 500 (SPX) should go Long, but I believe Bitcoin will catch up very soon.
What do You Think ?
Please Comment:
What lies ahead for the S&P 500Quantitative Tightening has been a negative deterrent for the S&P 500, however, given the relationship between Federal Tax Receipts and the Y/Y change in SPX we might see a less hawkish Fed in the coming months. This will create easier conditions to allow the SPX finish its 5th wave higher.
From ISM, to wage inflation - CPI the cycle still has a couple more months to go so I am certainly leaning to upward price pressure going forward.