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

Daily Analysis

As discussed in the weekly analysis, SPX should be involved in a topping process.

If my EW count is correct, price should establish the top of the wave (3) of (C) off the October 4 low.

Today I don't have much to write, I am on a wait and see mode as all the "ingredients" for the overdue correction are in place, it is only a matter to let price confirm it.

Major Factors:

  • Weekly Spinning Top.
  • Potential ending pattern.
  • Negative divergence of McClellan Oscillator which by eod Friday dropped below the zero line
  • 10 dsma NYSE adv-dec volume with negative divergence.
  • Daily Stochastic with a bearish cross.
  • VIX breaking to the upside a potential massive bullish falling wedge
  • Etc......

On Friday we had the first sign of weakness but a 1-day pullback is not enough and as a matter of fact price yesterday completely retraced Friday's sell off, therefore we don't have yet a confirmation that a top is in place.

Even if a top is not in place I am confident that we will "see" a correction of the December 19th. up leg very soon.

Given that yesterday price was once again unwilling to confirm the "awaited" reversal we cannot rule out another attempt to achieve a higher high.

Judging from the Dow Piercing Line candlestick, odds favour another push higher but if the Ending Diagonal is the correct pattern just a marginal higher high / Double Top should be the candidate for the long overdue reversal, therefore today we have to pay close attention on how price reacts once/if a higher high is achieved.


Larger Image

Probably the strongest "warning" is being given by VIX, which by breaking a very large bullish falling wedge to the upside, it should have established some type of a bottom and consequently a trend reversal should be expected.

Yesterday's Hammer may have established the required higher low needed to strengthen the assumed reversal.


Larger Image

 

Back to homepage

Leave a comment

Leave a comment