• 287 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 289 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 689 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 699 days Big Tech Disappoints Investors on Earnings Calls
  • 700 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 702 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 706 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 707 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 709 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
readtheticker

readtheticker

readtheticker

We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online…

Contact Author

  1. Home
  2. Markets
  3. Other

SP500 Wyckoff 2.0 Update

So your stock portfolio looks a bit like Nick Nolte, and you are scratching your head, is this is a real crash or a sell off to first support. Our information tells us the picture is clear, get ready to go long.

What we have:

  1. We have seen distribution on the SP500 since the Japanese quake. The big boys have been selling to the less informed expecting a mark down in prices. So far they are winning large !
  2. The much loved 1x1 Gann Angle from March 2009 lows is broken. We are watching for a shift to the right for a restart of the trend.
  3. Prices have fallen (close basis) to the Gann percent of 12.5%. This is where support is found most times on the first leg move.
  4. RTT TrendStatus says this is just a normal sell off in a still positive trend. Waiting for price action to confirm the bulls are in charge. Sure but for how long.
  5. QE has ended twice and twice we get a (so far) a mini crash. This is near exactly what happen in Japan when Government juice starts and stops. So you can bet the big boys are making bank if they are following Japanese QE history.
  6. assive Support at 120


The News

1) I read that Germany cant support Italy, and that it says it cant save the day. If so we may get SP500 printing 1000 very soon.

2) The FED may jawbone the market up with QE3 talk.

3) Who knows, the egg heads will be doing all they can to prop up RISK ON assets.


Conclusion

We expect a bounce that may last for 2 months before the real fun starts. If not the only other choice is CRASH to 100 on the SPY or 1000 on the SP500. Watch out for real strength in the US dollar, this will give you clues how serious this all is. We are looking the bullish side for now. The egg heads will sugar this market up one last time.

UPDATE1: Another smash down to 114 on SPY or 1140 on the SP500. We are now at the 16% percent level, we are also at the level when Ben Bernanke made his speech at Jackson hole Oct 2010 which started QE2. Watch out for buying. We want to go long but only after every one else has started to buy. Gold stocks are holding up well, thats where to go fishing. Nobody should try and catch this falling knife.

UPDATE2: Every one can see the head and shoulders on the SPY, we all saw the distribution within the head and shoulders pattern and every one expected the market to fall once QE2 ended, and Mr Market made sure it happened. Now its truth or dare, the expected bounce from the current market plunge will determine the trend for the next few months. If the expected bounce is sold off hard then new lows below SPY 100 can be expected. Volume on the upswings and downswings must be watched with an eagle eye. Wyckoff would go short if the upswing from current lows (SPY 110) is poor. The fact the massive 1x1 Gann angle is broken should tell us to standard aside until the picture is clear as we have no reason to be blindly bullish any more. The HFT (high frequency traders) and computer traders make the swings massive, 50 points on the SP500 is nothing these days.

SP500 ETF - SPY 2011-8-07
Larger Image

UPDATE3: This is why we expect a bounce. a few short term cycles says that the current bottom is in, the bounce should run into Sept 2011 at the very least. Assuming the current market plunge is over !

SPY Chart
Larger Image

 

Back to homepage

Leave a comment

Leave a comment