Additional Bullish Evidence – 12/02/22

The S&P 500 (SPX) 12/01/22 to 12/02/22 decline has given several clues that the rally from mid  – October is likely to continue.

The 5 – minute chart courtesy of Trading View illustrates  the action.

The drop from 4,100 has the look of an Elliott wave – Zigzag  correction. The decline so far has retraced less than 50% of the  prior rally which is relatively bullish. The subsequent rally off the 12/02/22 bottom was able to exceed potential Fibonacci resistance at the .618 retracement level.

Most importantly is  when  the 12/02/22 bottom was made.

The largest stock funds need liquidity and probably do most of their trading during the main SPX hours of 9:30 AM to 4:00 PM – ET.  The SPX bottom on 12/02/22 was made immediately on the open at 9:30 AM.

Key points to watch during the SPX 12/05/22 session – the “B” wave high at 4,087.29,  a move above this level opens the door for a rally  above the 12/01/22 top.  A break below the 12/02/22 bottom at 4,026.63 could trigger a drop to at least the .618 retracement level at 4,000.


Published by Mark Rivest

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

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