The_Chart_Pattern_Trader

The_Chart_Pattern_Trader

Topping process setting for a larger bear market. A second wave of selling to form a larger bear market, followed by a second recession. I believe the S&P 500 will make a new high after the breakout of the bullish falling wedge. This looks very similar to the topping process in Jan and Feb earlier this year. Investors' expectations in the aftermath of the...

The_Chart_Pattern_Trader

Still looking for the 5th wave to form and then to be followed by a crash move. The next 3 months are likely going to be brutal. I don't think Congress reaches a deal for new stimulus by the August 10th recess one week from now. I think that will tank the market along a other reasons I listed in my last post. Again, I think we bounce higher first, to finish the...

The_Chart_Pattern_Trader

This my best guess of the EW count. Keep in mind that the Dow and NYA both peaked on June 8th. I think the bear market rally finished for NYA and the Dow in June. However, due to the S&P 500's distortions of being controlled by about 15 stocks, it has moved above the June 8th high. It is likely forming a divergence as it did with the Jan and Feb peaks. Market...

The_Chart_Pattern_Trader

THE FINAL COUNTDOWN TO THE CRASH! The CRASH that is coming in July and August is going to catch both bulls and bears off guard and be a shock to the unsuspecting public. Complacency reigns supreme right now. The bulls have gone wild and no longer believe that prices can drop. This is what happens during bear market rallies. I expect the counter trend rally to...

The_Chart_Pattern_Trader

The S&P 500 will likely pull back and complete a wave 4 in a larger 5 wave push higher. SPX will then bounce to test its 78.6 % fib at 3175 and maybe fill the gap at 3190. Once the 5 wave push higher concludes, it will complete a long drawn out abc correction finishing wave 2. From there, a crash wave 3 should begin, that will produce an ugly summer selloff in...

The_Chart_Pattern_Trader

Things are playing out as I thought they would. I think we get a pop followed by a drop. If we are forming a large counter trend move that's going sideways in an abc EW correction, then it could be followed by a crash move. I think we've got a good shot at filling the gap if the last low in mid June holds. I think we will see the start of a crash move starting...

The_Chart_Pattern_Trader

If we are forming a large counter trend move that's going sideways in an EW abc correction. I think we've got a good shot at filling the gap if the last low in mid June holds. I think we will see the start of a crash move starting within one or two weeks. If the gap fills and we get a lower high than the peak made in early June. So the sideways move could continue...

The_Chart_Pattern_Trader

If we are forming a large counter trend move that's going sideways in an abc EW correction, then it could be followed by a crash move. I think we've got a good shot at filling the gap if the last low in mid June holds. I think we will see the start of a crash move starting within one or two weeks. If the gap fills and we get a lower high than the peak made in...

The_Chart_Pattern_Trader

new video about this chart at thechartpatterntrader.com

The_Chart_Pattern_Trader

The S&P500 is at major resistance. Horizontal resistance from previous peaks in 2018 and 2019, the cloud of resistance and the 61.8 % fib retracement. As I've been saying, I continue to believe that the S&P 500 would get rejection at either the 50 % or 61.8 % fib retracements. There is significant resistance in that area. See the video on this chart at: ...

The_Chart_Pattern_Trader Updated 

The S&P 500 moved into a Recovery Phase with the close above the 50-day MA. The first pull up in a bear market usually meets with failure. The S&P 500 had a Recovery Phase Failure when it closed back below the 50-day MA. The close back below the 50-day MA caused SPX to revert back into the Bearish Phase and TRIGGERED a Bull Fake Setup. A Bull Fake Setup occurs...

The_Chart_Pattern_Trader

I expect this bear market to be shorter in duration as it is an event-driven bear market. Event-driven bear markets tend to be shorter in duration. The last two bear markets were structural bear markets that were longer in duration and caused by internal issues. Event-driven bear markets are caused by external issues and thus don't last as long. Event-driven bear...

The_Chart_Pattern_Trader

A push above the 50 MA puts SPX in a recovery phase. The first pull up to the 50-day MA in a down trend usually meets with failure. If we get a recovery phase failure, look for a test of the lows. If we get a breakout and clear the 61.8 fib, the upper boundary of the rising wedge and the Ichimoku cloud, then a larger counter trend is forming that would carry the...

The_Chart_Pattern_Trader

I'm looking for the rejection near the 50 MA, fibs, and cloud here in the daily timeframe. Rejection at the 10-week MA in the weekly timeframe. Looking for a test of the March 23 lows to 2100-2150 for a tradable bottom. Should it form, I'm looking for a larger rally to 3000-3100 for a counter trend that will be followed by an even bigger selloff back towards...

The_Chart_Pattern_Trader

Another crash is coming. The bottom is not in yet. We will likely see a test of the lows in the next two weeks and the a much larger counter trend rally that could go into July. However, if we drop below the 2000 area on SPX with the next wave of selling the door is open for a bigger drop right here and now. My guess is that we get a tradable bottom in the next...

The_Chart_Pattern_Trader

Another crash is coming. The bottom is not in yet. We will likely see a test of the lows in the next two weeks and the a much larger counter trend rally that could go into July. However, if we drop below the 2000 area on SPX with the next wave of selling the door is open for a bigger drop right here and now. My guess is that we get a tradable bottom in the next...

The_Chart_Pattern_Trader

See the video on this chart at thechartpatterntrader.com See the my chart list at stockcharts.com

The_Chart_Pattern_Trader

See my latest video about the S&P 500 at thechartpatterntrader.com See my S&P 500 charts on page 1 and 2 of my chart list here: stockcharts.com I'm looking for rejection near the 50 % retracement and here on the weekly chart there is major resistance at the 10-week moving average at 2880. There is major resistance around the 2800 area. I expect the Awesome...