"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 2 hours The $85B Merger That Could Change The Media Forever
  • 3 hours Why Are Governments Creating Their Own Cryptocurrencies?
  • 4 hours How Debt Cycles Impact Gold
  • 5 hours Investors Up the Ante In $1.5B Uber Loan Deal
  • 7 hours Are Gold Miners Poised For A Breakout?
  • 8 hours Is The "Crypto Winter“ Over?
  • 10 hours China Says It Doesn’t Fear Trade War
  • 1 day Twitter CEO: The World Will Have A Single Currency
  • 1 day Asian Currency Correction Could Signal Looming Crisis
  • 1 day Best Buy Drops Telecom Giant Over National Security Threat
  • 1 day The Pros And Cons Of The Federal Interest Rate Hike
  • 1 day Good News For Gold Bulls Despite Interest Rate Hike
  • 1 day Trump Hits China With $50 Billion In Tariffs
  • 1 day Russian Gold Reserves Hit Record High Amid Rising Tensions With West
  • 1 day Stocks Pull Back Following Interest Rate Hike
  • 2 days Will Regulatory Rollbacks Make Banks 'Too Big To Fail?'
  • 2 days Elon Musk’s $2.6 Billion Tesla Challenge
  • 2 days Tech Giants Could Be First Victims Of U.S. Trade War
  • 2 days Dow Gains Despite Fed’s Rate Hike
  • 2 days The Biggest Threat To Chinese Oil Futures
The Pros And Cons Of The Federal Interest Rate Hike

The Pros And Cons Of The Federal Interest Rate Hike

The United States Federal Reserve…

Are Gold Miners Poised For A Breakout?

Are Gold Miners Poised For A Breakout?

Sooner or later, stock prices…

Market Report: Three's a Crowd


The SPX still appears to be inside the suspected ending diagonal pattern that has been going on from the Oct 2014 lows (aka Bullard lows). The overall look still appears to support the idea of a bearish wedge, or what Elliotticians call an ending diagonal, the back and forth whip is classic behavior for such a pattern, both the bulls and bears get taken to the cleaners as the market is likely ending the trend from the Oct 2011 lows. Once wave 3 or C is completed we should then embark on the largest decline since 2011.

SPX 4-Hour Chart
Larger Image

The market is essentially going nowhere expect grind higher in a wedge formation, it's a standard pattern that all technicians should be aware of, and once it's completed an aggressive reversal is seen. Ideally we still see new all time highs, although if the prior lows at 2063SPX are lost, I will assume that the market truncated at 2032SPX and wave 4 is underway to 1800. For aggressive traders new highs above 2134SPX will be a gift to sell, expect to read bullish stories and comments like "you must be mad to sell this market" that's the sort of comments you should expect at the top of a trend. The ending diagonal is a classic reversal pattern; in this case it so happens to be at the top of a trend.

SPX Weekly Chart
Larger Image

Until next time,
Have a profitable week ahead.


Back to homepage

Leave a comment

Leave a comment

Sign Up For The Safehaven Newsletter