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

SPX and Oil at Critical Juncture

The SPX at the 2050 level looks like a great place for a 'pullback' to begin as indicated in the chart below. There is a potential "distribution topping phase" in which the SPX may pull back to 2000. I see a potential target at 1890.

The price has made a series of lower swing highs and lower swing lows since topping in 2015. There was a big August 2015 sell-off, followed by a rally to a lower high in November 2015, then a sell-off to a lower low in January 2016. The rally currently is still at a lower high than the November 2015 high.

Based on data, provided by Investor Intelligence, the bulls are up to 47.4% and the bears are down to 27.8%. This data has been collected from a survey of newsletter writers and investor advisors. This sentiment has changed very quickly and now points to an 'exhaustion inflection point' in the SPX. This is a rare and excess 'swing' of sentiment within a very brief period of time. It is reflecting that this move upwards is 'unsustainable'!

A topping phase has now started, but know we could see slightly higher highs during this choppy process.

S&P500 Daily Chart

S&P500 Monthly Chart


Crude Oil and SPX Comparison Chart:

As long as the WTI Oil does not rally, the SPX will continue its' decline.

Crude Oil and SPX Comparison Chart


SPX and Oil Trading Conclusion:

I feel oil will hold up and bounce for a couple more weeks and help support the stock market. But once stocks lose their upward momentum and oil starts to fall again - look out below!

 


Find out when to buy and sell the key indexes, sectors and commodities with my ETF trade alert newsletter: www.TheGoldAndOilGuy.com

 

Back to homepage

Leave a comment

Leave a comment