SPX500 & Nasdaq: Confluence! Confluence! Confluence!With consumer confidence off at circuit breaking levels, the market, technically, has reached extreme levels of support. Let's look at it:
Technicals:
(1) Horizontal Levels of support
(2) 50%/61.8% fib confluence
(3) exDiv1
(4) extreme indicators
(5) Chikou span testing cloud support
(6) 28% drop is SPX
All of these levels are lining up around the same location. And just like in real estate "Location! Location! Location!" is the adage; in markets, "Confluence! Confluence! Confluence!" is the adage!
SPX500 trade ideas
S&P 500 on the Verge of a Death Cross!The S&P 500 (SPX) could soon have a cross of the 50 โ day Simple Moving Average (SMA) below the 200 โ day SMA. This is called a Death Cross and is usually the prelude to more decline.
In this case after the crossing the SPX could drop to 4,500 in a few trading days.
SPY, More pain to come? SPY / 1D
Hello Traders, welcome back to another market breakdown.
SPY is showing strong bearish momentum, breaking below resistance. However, the price is in the oversold zone for now. Hence, instead of jumping in at current levels, I recommend waiting for a pullback into the middle of the range zone for a more strategic entry.
If the pullback holds and sell mode confirms, the third leg lower could target new lows.
Stay disciplined, wait for the market to come to you, and trade with confidence!
Trade safely,
Trader Leo.
SPX: Market Reflexivity & Fractal PatternsIn this idea I would like to walk you through some principles which I use to find and relate historical complexities within rhyming cycles.
Market Reflexivity
Market reflexivity is a concept introduced by George Soros that defies the traditional TA notion of efficient markets by revealing that price movements do not merely reflect fundamentals โ they actively shape them. As prices rise, optimism fuels further buying, creating a self-reinforcing loop inflating bubbles. Conversely, declining prices trigger fear, accelerating downturns. Reflexivity explains why trends persist and why reversals can be abrupt, as self-sustaining cycles eventually reach a exhaustion point.
To put it simply, there is a feedback loop between market participantsโ perceptions and actual market conditions, suggesting that financial markets are not always in equilibrium because collective investor behavior actively drives price movements, which in turn influences future investor behavior.
Feedback Loops
Each massive rally eventually creates conditions that lead to overvaluation, resulting in sharp corrections.
Self-Fulfilling Expectations
Market participants, reacting to past price behavior, reinforce trends until a breaking point.
Structural Adaptation
Every major correction resets valuations, allowing for the next cycle to begin with renewed confidence and capital inflows.
Practical Application of Reflexivity
Compared to many tickers, SPX has exhibited relatively stable growth throughout history. Over the past 70 years, the most significant panic-driven decline occurred after its 2007 peak, with a 57% drop that defined a major cycle. Growth resumed in 2009, making this swing a key reference point for establishing historical relationships.
I see the Dotcom and Housing crisis-induced declines as part of a broader complexity, shaped by prior long-term growth. The two cycles appear as they do because they stem from an extended structural uptrend, not just the 250% surge from 1994 to the bubble top, which lacked a significant preceding decline. Cause-and-effect logic suggests that these crashes were a reaction to a much larger uptrend that began in 1974. A 2447% rally provides a more compelling reason for mass panic and selling, as corrections of such magnitude are rare.
Intuitively, the 2447% long-term upswing should have been preceded by a decline similar to the Dotcom and Housing crashes. This holds true, as the market experienced a nearly 50% drop after peaking in 1973 and 37% in 1968, following the same cyclical pattern of deep corrections leading to extended expansions. These corrections were relatively smaller than the Dotcom and Housing crashes because they are followed by a comparatively smaller 1452% rally from the end of WWII.
Multi-Fractals
Multifractals in market analysis describe the non-linear, self-similar nature of price movements, where volatility and risk vary across different scales. Unlike simple fractals with a constant fractal dimension, multifractals exhibit multiple fractal dimensions, creating varying levels of roughness. Benoit Mandelbrot introduced multifractal Time Series to refine the classic random walk theory, recognizing that price movements occur in bursts of volatility followed by calm periods. Instead of a single Hurst exponent, markets display a spectrum of exponents, reflecting diverse scaling behaviors and explaining why price action appears random at times but reveals structured patterns over different time horizons.
This justifies viewing price action within its structural cause-and-effect framework, where micro and macro cycles are interdependent, while oscillating at different frequencies. Therefore, we will apply the building blocks independently from boundaries of Full Fractal Cycle.
Since volatility varies, this reserves us the right to extract patterns with identical slope and roughness, and by method of exclusion relate to recent cycles starting from covid.
SPX - Have we bottomed ?History often repeats itself. SPX just bounced off a key level the 2022 high and the long-term channel support which has historically triggered strong reversals (red circles), and weโre seeing the same setup again. MACD is deep in bearish territory but showing signs of flattening. Volume is elevated โ likely signaling a washout or institutional accumulation.
If bulls defend this level, a bounce toward the 0.5 and 0.382 Fibs (5,493 โ 5,649) is on the cards. Break below 5,114 and itโs lights out again โ signalling that this bounce perhaps may just have been a gap and bull trap ? Iโm neutral and acting as per technical hints, waiting for signs of confirmation. Although Risk/reward is solid here if momentum shifts.
Would love to hear any thoughts or different opinions. All the best as always !
S&P500 1D Death Cross formed! Market COLLAPSE or Bear TRAP? The S&P500 index (SPX) is attempting to recover from the April 07 2025 market low, following the 90-day Tariff pause.
Last Thursday however it formed a Death Cross on the 1D time-frame, he first since May 11 2022, which was during the last Inflation Crisis correction. That was nothing like the current crash though as it was a technical 1-year Bear Cycle in contrast to today which is a flash crash inflicted by Trump's tariffs.
What looks though most similar to today is the 2020 COVID crash. Equally fast and brutal, that sell-off also took place under an extreme pressure environment of uncertainty (economic lockdowns) which the world has never seen, similar to today's tariffs that admittedly have put (for the moment) an end to the U.S. - China trade.
The COVID crash phase also formed a 1D Death Cross just 4 days after the March 23 2020 bottom. Last Thursday's 1D Death Cross came also just 3 days after the April 07 2025 Low. If this pattern of extreme market shock is a repetitive model under such fundamental events, then the stock market has bottomed. And if it follows the exact same recovery pattern as post-COVID, then it may reach the 1.1 Fibonacci extension at 6300 in a little over 5 months (162 days).
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Nasdaq and S&p500 short: Completion of B waveI mentioned in my previous analysis that we are waiting for a short (the previous one was a long-then-short linked with this idea). I did not post any short idea yesterday after that NOT because I am good and recognize a double combination. It's really because I was too busy with work and I am glad my last was a long-then-short.
Back to this, remember that the huge volatility has caused the points in the chart to compress and thus even though the stop loss looks small, it is actually still quite a number of points away. So my suggestion is to manage your size and keep it small relative to your account.
Good luck!
SPX500USD (S&P 500) Technical A`nalysisThe S&P 500 (SPX500USD) is currently approaching the 5,500.0 resistance zone after a strong bullish recovery.
๐ Bullish Scenario:
If price successfully breaks and retests 5,500.0, continuation towards the 5,708.6 resistance zone may follow.
A further break could push the market up to 5,795.6.
๐ Bearish Scenario:
If SPX500USD fails to break and sustain above 5,500.0, a rejection could send price down towards 5,196.8 support.
A deeper breakdown below 5,196.8 could extend losses towards 4,859.8.
โ ๏ธ Risk Disclaimer:
This is not financial advice or a trading signal. Always confirm market conditions using your own strategy before making any decisions.
Warning: what can save us from a collapse: must read.โ ๏ธThis analysis isnโt purely chart-based, but in this macro environment, understanding the bigger picture is essential for predicting market movements. Hopefully, TradingView will allow this idea so that everyone can read it.
What Can Save Us?
Before looking for a solution, we must first acknowledge the problemโand then determine if and when a resolution is coming.
1. Trumpโs Tariffs & Policies: A Market Shock
Trumpโs economic strategy marks a radical departure from the policies of the past 30 years. However, previous administrations weakened U.S. global influence, shifting power in favor of China.
Since Trump's motto is "Make America Great Again", serious changes are inevitable. Until investors fully grasp these policies, uncertainty will persist.
Letโs break down the key areas of impact and Trumpโs expected responses:
2.Monetary Policy & The Federal Reserve
The Federal Reserve (FED) and Jerome Powell are not aligned with the White House.
Powell is sticking to his monetary policy approach, but Trump needs 0% interest rates to implement his vision.
Markets hate uncertainty, and this is fueling volatility.
๐ด Trump's Response:
Expect a bombshell moveโTrump will fire Jerome Powell and replace him with a Fed chairman who supports rate cuts to 0%. This will cause short-term chaos but ultimately fuel a massive market rally as:
โ๏ธ The housing market recovers
โ๏ธ Liquidity surges
โ๏ธ Stocks skyrocket
3.U.S. Dependence on China & Russia for Raw Materials
The U.S. imports essential resources from China and Russia, making it vulnerable.
The BRICS alliance is strengthening, further threatening U.S. dominance.
๐ด Trump's Response:
Trump has openly expressed interest in acquiring Greenland, citing its rich natural resources. He will take it by military force if necessary, positioning the U.S. as a raw material powerhouse on par with Russia.
4.Lost Allies: Canada, Mexico & South America
Canada is aligning with Europe
Mexico & South America are leaning towards BRICS
๐ด Trump's Response:
To counter this:
Canada will be pressured into rejoining a U.S.-led trade blocโor face potential annexation.
South American economies will be crippled by tariffs, forcing them to reintegrate under U.S. influence.
5.Geopolitical Conflicts: Middle East & Ukraine
Iran is aligned with Russia & China
Ukraine relies on Europe (France, UK, EU), rather than the U.S.
The U.S. is not benefiting from these wars
๐ด Trump's Response:
If Zelensky continues to align with Europe, Trump may order a full-scale U.S. bombing of Ukraine, flatten Kyiv, eliminate Zelensky live on TikTok, and then split Ukraine with Russia.
This move would:
โ๏ธ Strengthen U.S.-Russia relations
โ๏ธ Secure a deal on Greenland
โ๏ธ Humble Europe
6.Conclusion: A Global Power Shift
Expect a period of chaos and fear. However, what investors must understand is that Trump is 100% serious about these movesโand he will execute them regardless of global opinion.
If Trumpโs strategy works:
โ
The U.S. will regain dominance
โ
Markets will rally hard
โ
Confidence in the U.S. economy will be restored
If Trump fails:
๐จ A prolonged economic downturn (15-20 years of stagflation)
๐จ U.S. & Europe suffer major losses
๐จ Best move? Relocate to Asia or the Middle East before the crash.
So, even if Trumpโs policies seem insane, the best-case scenario is that he succeeds.
๐ก DYOR (Do Your Own Research)
#Bitcoin #Crypto #Trump #MAGA #Geopolitics #StockMarket #SPX500 #Trading #Investing #Economy #FederalReserve #RateCuts
[S&P500] 2008-Style Collapse in MotionI believe we are witnessing the early stages of a 2008-style crash, though this one will unfold more swiftly and catch many by surprise. The crash will likely test the COVID-era lows, and once the panic subsides, a recovery toward new highs will follow.
FUNDAMENTAL REASONS
After the COVID-crash recovery, the market became significantly overbought, and a pullback was inevitableโsuch is the nature of markets. Trumpโs tariffs have provided a convenient excuse for profit-taking. While the tariffs didnโt directly cause the crash, they served as a much-needed catalyst. What might have been a typical bull market pullback, however, could escalate into full-blown panic.
Why? Index funds.
For the past decade, there has been near-religious advocacy for investing solely in low-cost index funds. This extraordinary delusion has overtaken investorsโ collective consciousnessโthe belief that no one can beat the S&P 500, nor should they try. The most rational choice, then, becomes focusing on your career or business and parking your money in index funds. After all, if the game canโt be beaten, why bother playing? This logic resonates with rational index fund buyersโmany of whom lack market experience and have never been tested in the trenches of a downturn. They assume theyโre in it for the long haul, unbothered by pullbacks, confident they can hold through volatility. Itโs a sound and logical stance.
But will they hold? Itโs easy to stay committed when the market is rising. When losses mount, however, the limbic system overrides rational thought, thrusting you into survival mode. You begin calculating how many years of work youโve โlost,โ lamenting that you could have bought a house if youโd sold at the peak, or watching your childrenโs college fund evaporate. Sleepless nights follow, compounded by a barrage of negative news. Eventually, exhaustion sets in, and in a desperate bid to salvage what remains, you hit the sell button.
With so many unsophisticated investorsโwho have never endured a true market panicโholding portfolios dominated by index funds, a negative feedback loop emerges. The further the market falls, the more people question their strategy and sell. This cycle intensifies until the panic is overdone, weak hands are shaken out, and the market stabilizes. Itโs a tale as old as markets themselves, though todayโs index fund evangelists have yet to experience it firsthand.
TECHNICAL REASONS
On the monthly chart, a clear and potent triple RSI divergence stands out. This indicates the market is severely overbought and has been struggling to make new highs.
While technical analysis rarely delivers definitive signals and can often be ambiguous, a triple RSI divergence on a monthly chart is as strong as it gets. Monthly charts of high-market-cap indices are immune to manipulation and short-term noiseโit would take an infinite amount of capital to artificially โdrawโ such a pattern.
The 2021-2022 pullback was an Elliott Wave impulsive wave down (a Leading Diagonal). In Elliott Wave Theory, impulsive waves mark either the final leg of a correction or the first wave of a new trend. A Leading Diagonal almost always signals the latterโmeaning another impulsive wave in the same direction is likely to follow.
The 2022-2025 bull market, meanwhile, has proven to be an ABC corrective wave up within the broader trend. This suggests the bull run wasnโt a continuation of the prior uptrend but rather an extended correction that pushed to new highs.
Thus, the leading diagonal down foreshadows another impulsive wave lower, and the corrective wave up confirms this trajectory. Since March 2025, the market has entered free-fall modeโprecisely what one would expect following an upward corrective wave.
This sets the stage for a high-probability Elliott Wave Expanding Flat pattern. Whatโs unfolding now is an impulsive wave down that should, at minimum, retest the 2022 low. If panic takes hold, however, the decline wonโt find a floor until it hits a major support levelโnamely, the 200-month moving average (MA200 Monthly), which sits precisely at the COVID bottom. Should that occur, the magnitude of the drop would rival the 2008 crash.
Yes i predicted the stock market crashnot many people can say they predicted the stock market crash, no one believed me but you can see in my previous ideas i saw it over 6 months in advance, though i wished it crashed a whole lot more, i do believe it has bottomed out and is a great long term buying opportunity.
S&P500: Bottom is in. 5,800 Target imminent.S&P500 is almost neutral on its 1D technical outlook (RSI = 44.927, MACD = -131.940, ADX = 29.116) as it has recovered from the tariff selloff, finding support a little over the 1W MA200. The 1D RSI made a double bottom and is much like the October 27th 2023 bottom. Both DB bullish divergences in contrast to the LL of the price. The immediate target on the rebound that followed in 2023 was the R1 level. Trade: long, TP = 5,800.
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S&P500 vs Unemployment vs Yield CurveI'd be surprised if that was the bottom in equities. 10yr/2yr is still coming out of inversion which historically is followed by a recession and a decline in equities, and we have unemployment remaining stubbornly low with only one direction to go from current levels. Market selloffs usually mean investors lose money while main street loses jobs so we should start to see the unemployment rate begin to rise from here assuming that the tariff war isn't over.
Trump proved today that he has no intention of relenting on the new tariffs; when China retaliated with 34% tariffs on US goods, he immediately hit them with 50% tariffs. Not sure which side will cave first, but as long as there is uncertainty around US/China trade the risk for further declines in equities remains.
The previous two times the yield curve inverted, we saw 50%+ declines in equities and rising unemployment when the curve came out of inversion. There was also a short-lived inversion in 2019 with a spike in unemployment and falling equity prices due to Covid, but the Federal Reserve lowering interest rates to 0% and printing trillions of dollars kept that bear market short and sweet.
We currently have a Federal Reserve that needs higher rates to fight inflation while at the same time we have a president who wants lower rates to stimulate growth. Catch-22 for the Fed: if they lower rates, they risk reigniting inflation. If they raise rates or keep them flat during a market decline it will speed up the decline in equities. Trump knows this which is why I don't think that the tariff war and market decline are over.
VIX Hits 27-Year Extreme. Is the Market About to CRASH or SOAR?The Volatility Index (VIX displayed by the blue trend-line) has entered a level that has visited only another 5 times in the last 27 years (since August 1998)! That is what we've called the 'VIX Max Panic Resistance Zone'. As the name suggests that indicates ultimate panic for the stock markets, which was fueled by massive sell-offs, leading to extreme volatility and uncertainty.
So the obvious question arises: 'Is this Good or Bad for the market??'
The answer is pretty clear if you look at the chart objectively and with a clear perspective. In 4 out of those 5 times, the S&P500 (SPX) bottomed exactly on the month of the VIX Max Panic signal. It was only during the 2008 U.S. Housing Crisis that VIX hit the Max Panic Zone in October 2008 but bottomed 5 months late in March 2009.
As a result, this is historically a very strong opportunity for a multi-year buy position. If anything, today's VIX situation looks more similar to September 2011 or even the bottom of the previous U.S. - China Trade war in March 2020.
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One more wave down for SPX500USDHi traders,
SPX500USD went straight into the target last week. From there it rejected and made a bigger correction (orange) wave X (updated wavecount).
Next week we could see the last impulse wave down to finish the bigger (red) WXY correction.
Let's see what the market does and react.
Trade idea: Wait for a change in orderflow to bearish and a small correction up on a lower timeframe to trade shorts.
If you want to learn more about trading FVG's & liquidity sweeps with Wave analysis, then please make sure to follow me.
This shared post is only my point of view on what could be the next move in this pair based on my technical analysis.
Don't be emotional, just trade your plan!
Eduwave
Low Here Would be Consistent with a New High Coming Making a low in the general area in which we trade now would be highly consistent with a bullish trend development.
If this is the low around 5200, then I think it's quite likely we see a new high.
Profits should be locked in on all previous bear entries given.
If the local downtrend breaks here, the bear move is likely over.
Trump Delays Tariffs for 90 Days. The S&P 500 Rebounds SharplyTrump Delays Tariffs for 90 Days. The S&P 500 Rebounds Sharply
As shown in the chart of the S&P 500 (US SPX 500 mini on FXOpen), the index is currently trading near the 5,500 level.
This result is highly encouraging, considering that as recently as yesterday morning, the index was hovering around 4,900.
Why Have Stocks Risen?
The strong rebound seen yesterday evening was triggered by a statement from the US President โ he announced a 90-day delay in the implementation of wide-ranging global trade tariffs, which had originally been unveiled on 2 April and led to a sharp drop in the index (as indicated by the arrow).
However, this does not apply to China, for which tariffs were not delayed but increased. "Due to the lack of respect China has shown towards global markets, I am raising the tariff imposed on China by the United States of America to 125%, effective immediately," said Donald Trump, according to media reports.
Overall, US stock markets responded positively to the news, and Goldman Sachs economists have withdrawn their US recession forecasts.
Technical Analysis of the S&P 500 Chart (US SPX 500 mini on FXOpen)
Despite yesterdayโs sharp rebound, the stock market remains in a downtrend (as indicated by the red channel).
From a bullish perspective:
โ A Double Bottom pattern (AโB) has formed around the 4,900 level;
โ Price has moved into the upper half of the channel.
From a bearish perspective:
โ Bulls must overcome key resistance near the psychological 5,000 level;
โ While tariffs have been delayed, they have not been cancelled. As such, the risk of an escalating trade war is likely to continue putting pressure on the S&P 500 index (US SPX 500 mini on FXOpen) in the coming months.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Could See a Huge Pop in a Bull Trap I think the odds of this turning into a spectacular short are unusually high for indices but even if so there could be some massive stop gunning to come first.
I've a big bearish bias into a rip but it would likely be exceptional rally if I have the idea right.
Picked up some longs targeting 5800. Ideally looking to make some profit and use it to bankroll the short attempt.
Would dump these quite quickly if structure broke. ATR is too big to mess about.
June 2026 Sp500 will be at 7000 pipsThis is a corrective move. Trump wanted this to deal with the US debt. Everything is smoke a Trump crash. Nothing else.
In June 2026 Sp500 will top at 7000 pips in a massive EW 5.
Now we are in EW 4. It will take some time to settle the dust as you can see.
Be ready, because after Sp500 bottoms out around 4700-4900 pips we will see a MOASS in the next year.
After that, be ready, as well, to see a massive crash to 2500 pips that we will see at the end of 2028.