Taking a look at the 3 Day chart, we can clearly see our golden cross on the 50 / 200 MA remains intact & no death cross has taken place yet to confirm a major bearish structural shift
While Studying the past 45 years of the S&P 500, I found one instance in which SPX printed 4 consistently red 3-day candles in a row, SIMULTANEOUSLY AFTER A 3 DAY GOLDEN CROSS:
Enter: October, 1978
As we can see, prices bottomed on the 4th RED CANDLE, & traded sideways for an extended period of 8 months before regaining bullish momentum
And the 3 day chart DID NOT PRINT A DEATH CROSS AS PRICES STABILIZED
This indicates to me that no major sell off seems to be coming * AS OF NOW *
Therefore, I believe markets should bottom between now & October 12
BUT IN THE MEANTIME PAY CLOSE ATTENTION TO THE 4150 - 4050 RANGE ON $SPX...
4150 IS THE 0.5 FIB RETRACEMENT ZONE SO I EXPECT THIS LEVEL OF SUPPORT TO BE CRITICAL
While Studying the past 45 years of the S&P 500, I found one instance in which SPX printed 4 consistently red 3-day candles in a row, SIMULTANEOUSLY AFTER A 3 DAY GOLDEN CROSS:
Enter: October, 1978
As we can see, prices bottomed on the 4th RED CANDLE, & traded sideways for an extended period of 8 months before regaining bullish momentum
And the 3 day chart DID NOT PRINT A DEATH CROSS AS PRICES STABILIZED
This indicates to me that no major sell off seems to be coming * AS OF NOW *
Therefore, I believe markets should bottom between now & October 12
BUT IN THE MEANTIME PAY CLOSE ATTENTION TO THE 4150 - 4050 RANGE ON $SPX...
4150 IS THE 0.5 FIB RETRACEMENT ZONE SO I EXPECT THIS LEVEL OF SUPPORT TO BE CRITICAL