Important US Stock Market Bottom Could be in Place – 02-24-22

The  02/24/22 dramatic reversal  after a powerful decline may have created an important bottom for US stocks. 

The daily S&P 500 (SPX) chart courtesy of BigCharts.com illustrates  several bullish signals.

There were bullish divergences on the daily Slow Stochastic, RSI and MACD vs. the higher bottom made on 01/24/22.  Slow Stochastic had a bullish lines crossover.  Also note how far the SPX was outside the lower Bollinger Band.  Its similar to the SPX action on 01/24/22.  Today’s signal implies  there could be a post 02/24/22 rally at least as large as the post 01/24/22 rally.

The daily SPX chart courtesy of Trading View illustrates a Fibonacci support level.

The 02/24/22 SPX bottom was near a .618 Fibonacci retrace of the rally from the 01/29/22 bottom.

The 30 – minute SPX500 – Point & Figure chart shows support levels.

The SPX500 02/24/22  bottom was just above a moderate support level of 5 – columns.

Traders  had reversed half of a 50% long position to short on a break below SPX 4290.  Subsequently the position was  stopped out on a 1% move above the short entry point.

Just before the close of the main session the SPX had rallied to just above SPX 4290.  Daily momentum indicators strongly imply more  upside action – coming soon.

After the SPX deep retracement that peaked on 02/02/22, I’ve noted that the decline from the 01/04/22 top could be a correction within an ongoing bull market.  The dramatic reversal and  bullish momentum signals  made on 02/24/22 adds additional evidence to this theory.

The next blog will give a detailed Elliott wave explanation as  to why the drop from early January 2022 could be correction.  

Published by Mark Rivest

Independent investment advisor, trader, and writer. Articles have appeared on Technical Analysis of Stocks and Commodities , Traders.com Advantage, Futuresmag.com, and Finance Magnates.

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