• 4 days Quantum Computing Is The Newest Megatrend In Silicon Valley
  • 5 days How To Invest In The Cybersecurity Boom
  • 7 days Investors Are Patient With Unprofitable Giants
  • 9 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 11 days 5 Stocks To Keep A Close Eye On This Year
  • 13 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 13 days Central America Is Ready For The Bitcoin Hustle
  • 15 days China’s Video Game Restrictions Unlikely To Slow Down Booming Industry
  • 16 days Top Performing Stocks As Inflation Fears Grow
  • 17 days US Airline Stocks Take A Beating On New EU Restrictions
  • 18 days This IPO Could Open Sustainable Fashion Floodgates
  • 19 days Crypto Crime Nets Another $2B Fraudster
  • 21 days This Week’s Hottest Meme Stocks
  • 23 days Why World Markets Should Be Watching Germany Closely
  • 25 days Could ‘Cultured’ Meat Rival The Plant-Based Megatrend?
  • 27 days ‘Easy Money’: Crypto Is Still Attracting Newbie Investors
  • 29 days Foreign Syndicates May Have Stolen Up To $400B In COVID Benefits
  • 29 days Gold Jumps Above $1800 Ahead Of Jackson Hole Summit
  • 30 days International Banks Blacklist Afghanistan Following Taliban Takeover
  • 31 days China’s Tycoons Are Getting A Serious Reality Check
Chris Vermeulen

Chris Vermeulen

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.

Contact Author

  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