It looks like we are one again in a bear rally that has made it to the upper bear trendline. In the recent past (circled) we have seen rejection, and some throw overs that pull the rug out. Im not sure if this is the same, but the daily RSI is still in a spot it can run, and the MACD has curled up.... So... It looks like it can run a couple more days before...
Refer to J Murphy, Technical Analysis of the Financial Markets: Fig 4-10a; rejection, return to TL; rejection confirmed:
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See p. 72; and discussion of reversal patterns with diminishing volume pp 103, 107/8; Fig 6.8c with discussion of wedges as reversal pattern, and volume on pp 147-150.
All this is THEORY. Trade at your own Risk; GLTA!
NB:...
Nasdaq is more than 3 times the size of S&P500! Nasdaq100/S&P500>3.
This is an extreme situation because the last time when this ration was bigger than 3 it was in the dotcom bubble in the year 2000! So the Nasdaq is absolutely overvalued.
The technical picture is that an expanding rising wedge has been built up and a classic throw over occur at the moment. So I...
Happy 5th of July! Ominous portent in the candlesticks. Get confirmation on the close and Monday's price action- imminent throwover from ATH IMO.
Trade at your own risk; GLTA!
Chart says all. Broke channel on Bear Flag, pumped back up to TL, expect throwover. Textbook example:
Ref: Murphy; Technical Analysis of the Financial Markets, Fig 4.10a;
"Example of Rising Support Line becoming resistance. After it has been broken to the downside, usually a support TL will function as resistance on subsequent rallies."
See the chart. See my bearish Gartley chart. Tariffs + FOMC rate hike + midterm elections = serious pressure on equities. Just starting down...
This is not investment advice. It's pure guesswork, trade at your own risk.
Don't expect a real hard selloff; this is an alternating wave coming off the June Swoon deep selloff, but could still have some pretty fierce selling and ^^Vix.
Index will likely go on to form double top and new All-Time High, breaking up from channel later this year after resting comfortably at ~24840-25040 for a few days.
We are in a 'reactionary wave'...
The slip-slide has begun. Could surprise us with a last-ditch retest from here, but futures are grim and price action = bearish.
After an exhaustion gap - up we had a shooting star doji on the 2-hours 8/7 and an engulfing bear candle 8/8 end of day.
High probability given these signals the Dow is in throwover. A sharp decline might ensue following rejection from...
