SPX MY BEAR VIEWUsing Tim West´s long short filter set to 4-16 emas years 2000 & 2008 corrections were identified. The 4-16 emas also gave a bear signal in years 2010 & 2011 which were false signals. Yet when using this system along with T3 mvas 5 -20, years 2000 & 2008 experienced a bear cross along with the 4-16 emas. Years 2010 & 2011 the T3 mvas did not cross showing the 4-16 ema cross was a false signal. Using two different types of moving averages to try and filter out false signals. Although this current T3 mva cross along with the 4-16 ema cross could be a false signal. I don´t know, only time and price will show me if this is the case. In years 2000 and 2008 when the 4-16 emas crossed along with the T3 mvas, price experienced a bear market rally back up to its 50% & 61.8% fibs where price hit a brick wall and eventually traded back down to it´s -1.618 fib extension. Currently the the 50% & 61.8% are at 2003 to 2034 with the -1.618 at 1446 I believe if history repeats price could rally back up to 2003-2034 range and would look to trade long up to these levels. If price finds noticable resistance at the hwb, would look to short with a target at 1446 I could be 100% wrong so using a stop is recomended.
Ym
DAX Pullback?The DAX has had a huge rally of 36.51% from the October low, 22.55% in 2015 and 11.46% from the ECB's announcment of euro style QE. This is a huge rally that could enter some resistance with the start of the ECB's QE starting in March. next week the ECB meets on the 5th and could create a news reversal. IMO this current rally since the ECB announced QE could be buy the rumor, when the ECB QE finally starts QE, the rally has already happened, all the buying is used up and a news reversal is created. A news spike up to 11435-11465 where price is clearly rejected would be a sign that the DAX could be in for a pullback. However, would wait for a daily close after the ECB meeting on the 5th before taking any action in a short position, since the DAX is only allowed to go up at the moment.
SPX Good RR Setup for a short. I'm not implying the spx rally is over or a top is in. But looking at the channel the spx has been trading in since 2011 lows, there is not much room to the upside at the moment and believe by observation there is more room for the spx to pullback. My plan is to sell the hwb from highs to lows as long as it acts as resistance with a tight stop. Last week was the first time the 61.8 short held as resistance. For the whole month of February there was no resistance, last week it showed up. If it continues, looking to sell resistance. If the market rallies back up to highs which it could, I would look to sell into strength with my stop above the top channel. IMO it's a good rr trade and better than the long at this moment. I would look to take off the trade ar 2020-2012 could even see the spx trade back to 1968.
SPX ObservationThe monthly chart is showing price is attempting to retest old trendline support as resistance. 2008 when price broke below TL support 2003 thru 2008 price tested it as resistance will price try to retest it as resistance.
I do not know if the SPX will trade up to its old channel with summer starting in a few weeks, but if it does, I would look for resistance to short. Currently this level is around 2000.
My plan is to buy support with a tight stop as long as support holds. Support breaks will look to sell the market. I will admit, entering June I would not be surprised to see the SPX pullback and was thinking it would have already started. However, price is indicating it is trying to go higher and am not going to fight price action.