Rising From a Value Area – 08/25/22

The previous blog “Declining into a Value Area – 08/22/22 presented evidence that US stocks could be finding support on either 08/22/22 or 08/23/22.  A  bottom was made on 08/24/22 just slightly below the area illustrated on the SP – E-Mini continuous chart.  There’s a good chance that a multi-day rally may have commenced.

The 15 – minute  S&P 500 (SPX) chart courtesy of Trading View updates the action.

The 08/22/22 blog illustrated the Volume Profile method on the SP 500 continuous E-Mini contract.  Using  Point & Figure charting also shows a support level.  Note that the SPX bottomed at   9 – columns of support.

The daily SPX chart presents additional evidence that a bottom could have been made on 08/24/22.

The daily Stochastic bullish lines crossover implies at least a multi-day rally may have begun. It’s possible the SPX could make a marginal  new high for the rally that began on 06/17/22. If the SPX can make  a marginal new rally high it could be a very important peak. 

Depending on market action, additional blogs will examine  this  theory in greater detail.

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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