Dear Fellow Traders,
I would like to highlight some noteworthy developments in the recent S&P 500 chart analysis:
Observation of a Potential Double Bottom:
Notably, the dates of September 29th and October 10th marked a double bottom pattern on the chart exactly a year ago. We find ourselves within this time frame once again.
Key Retracement Level and Market Control:
The recent movement saw the index reach the 50% retracement level, sometimes referred to as "the center of gravity." Above this level, the bulls are deemed to be in control, while below it, the bears have the upper hand. This configuration provides an opportunity for establishing a stop-loss strategy at new lows, offering a trade with relatively low risk.
Notable Weekly Chart Metrics:
On the weekly chart, we observed a decline of 40 points from July 27th, spanning ten weeks, resulting in a 4:1 ratio right at the retracement level.
Historical Reference to 1987:
There has been much discussion on social media regarding parallels to the events of 1987. It's worth noting that I have a good understanding of the 36-year cycle, which represents one-quarter of 144. Comparing the current situation to 1987, we see a similar duration of the downward move, lasting 60 days. While the severity differs, the time frame aligns. One could argue that this cycle has already run its course.
Positive Seasonal Outlook:
Additionally, it's important to consider the seasonal aspect of the stock market. Historically, October marks a shift toward more positive market conditions following a typically challenging September.
Thank you for your attention and time.
I would like to highlight some noteworthy developments in the recent S&P 500 chart analysis:
Observation of a Potential Double Bottom:
Notably, the dates of September 29th and October 10th marked a double bottom pattern on the chart exactly a year ago. We find ourselves within this time frame once again.
Key Retracement Level and Market Control:
The recent movement saw the index reach the 50% retracement level, sometimes referred to as "the center of gravity." Above this level, the bulls are deemed to be in control, while below it, the bears have the upper hand. This configuration provides an opportunity for establishing a stop-loss strategy at new lows, offering a trade with relatively low risk.
Notable Weekly Chart Metrics:
On the weekly chart, we observed a decline of 40 points from July 27th, spanning ten weeks, resulting in a 4:1 ratio right at the retracement level.
Historical Reference to 1987:
There has been much discussion on social media regarding parallels to the events of 1987. It's worth noting that I have a good understanding of the 36-year cycle, which represents one-quarter of 144. Comparing the current situation to 1987, we see a similar duration of the downward move, lasting 60 days. While the severity differs, the time frame aligns. One could argue that this cycle has already run its course.
Positive Seasonal Outlook:
Additionally, it's important to consider the seasonal aspect of the stock market. Historically, October marks a shift toward more positive market conditions following a typically challenging September.
Thank you for your attention and time.