There is nothing new in this market world. Patterns do get replicated, otherwise head and shoulders and double bottoms would not exist...
The big pattern we are seeing now is a broadened replication of previous pattern.
Observe how prior to the significant moves, price congested between Fibonacci yearly S1 and S2 levels. Back in late 2014, there was more stability, hence price was nicely contained by S1-S2. Now we are seeing the same but with larger sways due to instability.
R1 = PP + ((High – Low) x .382)
R2 = PP + ((High – Low) x .618)
I do not exclude we might get stuck in Obama-Merkel range (gray box) a sort of mutual agreement between US and EU. Though price behaves differently now, we are in lower bottom of Yearly Fib levels, Yearly Camarilla and so on.
Note this EURO INDEX-USD INDEX spread chart.
Large broadening sways are signs of crisis and instability. We observe those broadening tops, bottoms, megaphones not only in SPX500 but in EURUSD and other pairs. Its a zombie market after FED started buying stocks that caused SPX500 zombious rise (ignoring all fundamentals). Forex follows SPX500 and lags by a few seconds after it.
Those patterns indicate instability. One can not do trend trading now as the highs and lows get violated either way. My suggestion is to do reactionary day trading starting at London session on 15 min- 30 min chart using daily pivot range, 3 day pivot range, opening ranges (ACD) for detecting the daily bias and daily camarilla for targets.
The big pattern we are seeing now is a broadened replication of previous pattern.
Observe how prior to the significant moves, price congested between Fibonacci yearly S1 and S2 levels. Back in late 2014, there was more stability, hence price was nicely contained by S1-S2. Now we are seeing the same but with larger sways due to instability.
R1 = PP + ((High – Low) x .382)
R2 = PP + ((High – Low) x .618)
I do not exclude we might get stuck in Obama-Merkel range (gray box) a sort of mutual agreement between US and EU. Though price behaves differently now, we are in lower bottom of Yearly Fib levels, Yearly Camarilla and so on.
Note this EURO INDEX-USD INDEX spread chart.
Large broadening sways are signs of crisis and instability. We observe those broadening tops, bottoms, megaphones not only in SPX500 but in EURUSD and other pairs. Its a zombie market after FED started buying stocks that caused SPX500 zombious rise (ignoring all fundamentals). Forex follows SPX500 and lags by a few seconds after it.
Those patterns indicate instability. One can not do trend trading now as the highs and lows get violated either way. My suggestion is to do reactionary day trading starting at London session on 15 min- 30 min chart using daily pivot range, 3 day pivot range, opening ranges (ACD) for detecting the daily bias and daily camarilla for targets.