Don't get too excited about this move up. I actually wanted to see another low overnight before more upside, but since we kept rallying overnight this is likely the end of an ABC. Yes it will probably go higher past 4050, but not very much with that 4hr hidden bullish divergence. As I said in one update, the market will likely chop around first for a few weeks and it still looks like that's the case.
Another B wave down from this area is likely the next move and then - guess what? Another bigger wave up for C. This should absolutely confuse everyone and the C move up will probably be hailed as "the bottom is in" because, "The Fed's actions will slay inflation and the market is forward thinking, so now we're bullish again". Or, something like that. The bigger decline may start in early or mid October and finish in early to mid November.
Having said that, a few stocks will likely rally anyway for a while - Pot stocks likely, Meta and Snap, and probably the junkier stocks held by ARKK. I may put up a few charts of those later. Oh and don't forget M. Burry's GEO
Another B wave down from this area is likely the next move and then - guess what? Another bigger wave up for C. This should absolutely confuse everyone and the C move up will probably be hailed as "the bottom is in" because, "The Fed's actions will slay inflation and the market is forward thinking, so now we're bullish again". Or, something like that. The bigger decline may start in early or mid October and finish in early to mid November.
Having said that, a few stocks will likely rally anyway for a while - Pot stocks likely, Meta and Snap, and probably the junkier stocks held by ARKK. I may put up a few charts of those later. Oh and don't forget M. Burry's GEO
Comment:
target of 18ma on spx reached
not very much with that 4hr hidden "bearish" divergence