• 826 days Will The ECB Continue To Hike Rates?
  • 826 days Forbes: Aramco Remains Largest Company In The Middle East
  • 828 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,228 days Could Crypto Overtake Traditional Investment?
  • 1,233 days Americans Still Quitting Jobs At Record Pace
  • 1,235 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,238 days Is The Dollar Too Strong?
  • 1,238 days Big Tech Disappoints Investors on Earnings Calls
  • 1,239 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,240 days China Is Quietly Trying To Distance Itself From Russia
  • 1,241 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,245 days Crypto Investors Won Big In 2021
  • 1,245 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,246 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,248 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,249 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,252 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,253 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,253 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,255 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  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