• 16 hours Is Winter Coming For HBO?
  • 22 hours Rise Of EVs Signals Peak Gasoline
  • 2 days Jeff Bezos Doubles Down On Space Colonization Ambitions
  • 2 days Gold Mining Stocks Stuck In Limbo
  • 3 days Executive Order Targets Huawei Over Espionage
  • 3 days Why Now May Be The Best Time Ever To Hold Gold
  • 4 days Fake News Sinks Shares In UK-Based Bank
  • 4 days De Beers To Build $468 Million Diamond Recovery Ship
  • 4 days Moody's: Turkey Faces Possible Credit Downgrade
  • 4 days Tesla's Solar Sales Are Slipping
  • 5 days Auto Industry To Get Temporary Tariff Relief
  • 5 days Welcome To The World’s Biggest Free Trade Area
  • 5 days Central Banks Are Stockpiling Gold At The Fastest Rate In Half A Decade
  • 5 days U.S.-China Impasse Threatens Rare Earth Trade
  • 6 days Wall Street Bears $1 Trillion Brunt Of Trade War
  • 6 days Mobile Sports Betting Isn’t Quite Minting Millionaires Just Yet
  • 6 days The Marijuana Industry’s Shocking Secret
  • 6 days A Generational Shift Is Quietly Unfolding In The Mining Industry
  • 7 days Pentagon To Pay $6 Billion To Help Build Border Wall
  • 7 days Beijing Backlash: Stocks Slammed, Gold Boosted
How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Strong U.S. Dollar Weighs On Blue Chip Earnings

Strong U.S. Dollar Weighs On Blue Chip Earnings

Earnings season is well underway,…

  1. Home
  2. Markets
  3. Other

The State of the Trend

Last week we observed that SPY and SPX are in the middle of a perfect bear flag, and cautioned to keep a close eye on 1140 and 1185, as areas of support and resistance. Both targets were hit, and the break below 1185 suggested that the lower flag line will come into play again.

This week we continue monitoring the bear flag for signs of strength or weakness:

SPX Bear Flag

Given the oversold nature of market internals, and the vicinity of flag support, the expectation once again is for a rebound within a day or two.

Buy Volume versus Percent Bulls

We know that the index will eventually break downward (more likely) or upward from the flag, and that is likely to occur from either oversold or overbought conditions. However, betting consistently on markets becoming even more oversold from already oversold levels is a low odds play, since market crashes don't occur that often. Therefore, keep that possibility in mind but also keep in check the urge to bet the house on it. Position sizing and money management are far more important than guessing what the market is going to do next.

In fact, one of the many unique features of our upcoming app is an original position sizing calculator coupled with a risk/reward indicator.

 

Back to homepage

Leave a comment

Leave a comment