• 547 days Will The ECB Continue To Hike Rates?
  • 547 days Forbes: Aramco Remains Largest Company In The Middle East
  • 549 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 949 days Could Crypto Overtake Traditional Investment?
  • 954 days Americans Still Quitting Jobs At Record Pace
  • 955 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 959 days Is The Dollar Too Strong?
  • 959 days Big Tech Disappoints Investors on Earnings Calls
  • 960 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 961 days China Is Quietly Trying To Distance Itself From Russia
  • 962 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 966 days Crypto Investors Won Big In 2021
  • 966 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 967 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 969 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 969 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 973 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 974 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 974 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 976 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

Daily Analysis

Today only a short and brief update, it is holiday in Madrid so I will try to spend most of the day with my children.

Yesterday we had a gap down and go.

The 1340 SPX key pivot support level was breached. The Dow erased the positive divergence that was sustaining the "live on hopes" scenario of an immediate bullish resolution of the corrective pattern.

It is now a fact that SPX despite it is unfolding a corrective EWP now it has only "thin air" until a potential target box located in the range 1300-1285 where I expect price to establish an important bottom.

The overall picture in my opinion remains bearish. As I mentioned in my last weekend update my preferred scenario calls for a wave (B) pullback.


Larger Image

Sine we are dealing with a corrective EWP we have to be open minded, but so far, from the April 2 top price is unfolding a Zig Zag down (ABC correction) with the wave (C) in force since the May 1 peak. As a reminder the wave (C) has to unfold an impulsive 5-wave structure (or an ending diagonal).

For the immediate time frame, in my opinion, price has two options:

  • Embark in a "crash mode" with a "killer" wave (III) of (3) down.
  • Undertake a recovery attempt with a wave (2) relief bounce that may reach the 1366 -1375 resistance area.


Larger Image

In my opinion the option of a relief rebound (countertrend move) is more likely since SPX is now oversold, we have yesterday's eod print below the lower BB and we have oversold readings of:

  • Short term momentum indicators like the RSI (5) is oversold


Larger Image

  • McClellan Oscillator is entering the oversold zone

 

Back to homepage

Leave a comment

Leave a comment