Watch S&P for correction! Downtrend CONFIRMED!
S&P posts 2 consecutive five bar periods of new lows and no new highs. This hasn't happened since March 2020 right before the Covid Crash.
What to do: Right now monitor. Downtrend confirmation DOES NOT mean short.
Watch for a consolidation followed by a range expansion below the mode to confirm breakout.
Note: Both these downtrend confirmations brought the index to the most extreme dips below the 50EMA in the almost 4 years
Note: Technically in March 2020 we did not get 2 five bar periods of new lows. We got one clear trend confirmation (Feb 20 2020 - Feb 28 2020) followed shortly by 7 consecutive lower lows (Mar 4 2020 - Mar 12 2020) with the exception of Mar 10 which closed 5 cents above the previous low. This was 2 weeks before the Feds backstop on Mar 23rd 2020.
What to do: Right now monitor. Downtrend confirmation DOES NOT mean short.
Watch for a consolidation followed by a range expansion below the mode to confirm breakout.
Note: Both these downtrend confirmations brought the index to the most extreme dips below the 50EMA in the almost 4 years
Note: Technically in March 2020 we did not get 2 five bar periods of new lows. We got one clear trend confirmation (Feb 20 2020 - Feb 28 2020) followed shortly by 7 consecutive lower lows (Mar 4 2020 - Mar 12 2020) with the exception of Mar 10 which closed 5 cents above the previous low. This was 2 weeks before the Feds backstop on Mar 23rd 2020.