March '18, Oct '18, May '19, Feb '20, Now, Correction or Crash?
The 2hr chart shows the Hull above BOTH the EMA 21 and the SMA 50. When this happens (rarely), downward pressure on price occurs rather soon. Correction or Crash? Seeing how this plays out, especially with the Fed meeting, Congress' Tech Hearing, AMZN/AAPL earnings, GDP, all before end of week= Fireworks.
Comment:
The Stochastic RSI is aligning on an extended Upper-Band basis e.g. the 3-Hr, 4-Hr, 1-Day, 2-Day, 3-Day, 4-Day, 5-Day, and the 1-Week are tracking nearly identical. The 1-Hr and 2-Hr are close and should reach that territory tomorrow, Friday, Aug. 7. This is the type of setup that defines tipping points. This does not mean that the high is necessarily in yet, as the 1 Week chart topped in a similar position the Wk of January 13th in the SPX, which made new highs through February. The event of COVID helped accelerate the move to the downside, but the trend was signaling a correction save the Wk of Feb. 10. If there is some massive news tomorrow that skews bearishness for the markets, there would be a nearly perfect confluence awaiting for accelerated downside. Like I mentioned, a greater market move could be pushed, but my attention is going to be very close to the news tomorrow, which could outline something new for the future that the market has not already forecasted and digested.
