• 91 days Could Crypto Overtake Traditional Investment?
  • 96 days Americans Still Quitting Jobs At Record Pace
  • 98 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 101 days Is The Dollar Too Strong?
  • 101 days Big Tech Disappoints Investors on Earnings Calls
  • 102 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 104 days China Is Quietly Trying To Distance Itself From Russia
  • 104 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 108 days Crypto Investors Won Big In 2021
  • 108 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 109 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 111 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 112 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 115 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 116 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 116 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 118 days Are NFTs About To Take Over Gaming?
  • 119 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 122 days What’s Causing Inflation In The United States?
  • 123 days Intel Joins Russian Exodus as Chip Shortage Digs In
  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