Anyone who's been following my charting methods probably realizes I like trying to plot market trend curvatures. Which is exactly what I'm attempting to do with the S&P now that growth has grinded to a snail crawl at this range. My upper ranges (Green, yellow, orange, and red lines) are showing strong price correlation, primarily in the Green/yellow range. These trend lines have been present on my graphs for the past few weeks, but now that the charts are showing visible signs of slowing growth I've been presented a few indicators for where price could suddenly lose traction. Having fallen below the cyan "sky" break out, price is now looking for support on the violet "decaying" trend line. If the price doesn't find support on the violet trend, I see a strong potential for the S&P to correct as low as the purple. The market likely isn't going to react to the purple trend for at least another week. Assuming these ranges become relevant, come the second week of May I should be able to call the imminent major correction to within a week. At the moment, my gut points to the second week of June, but if the market goes red near the violet indicator, the correction may come sooner.
Regardless of the market's reaction, as always please act with extreme caution when trading in a market this close to it's All Time Highs. Stop-losses are a traders best friend! counter-hedging into negatively correlated assets (such as cryptocurrency/precious metals) could also help you avoid incurring major losses in the coming profit cycle.
Regardless of the market's reaction, as always please act with extreme caution when trading in a market this close to it's All Time Highs. Stop-losses are a traders best friend! counter-hedging into negatively correlated assets (such as cryptocurrency/precious metals) could also help you avoid incurring major losses in the coming profit cycle.