The 05/31/22 blog “S&P 500 Momentum Update – 05/31/22” noted the short-term S&P 500 (SPX) price action with the following observations. “The hourly SPX high on 05/31/22 had a significant RSI bearish divergence which implies a decline could continue until at least 06/01/22. A Fibonacci .236 retrace of the SPX rally from 05/20/22 to 05/31/22.Continue reading “Using Short-Term Patterns to Determine the Main Trend”
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Examination of Two Major Bear Markets
The US stock market declines from 1929 to 1932 and 2000 to 2002 reveal clues that could be helpful in determining stock actions in 2022. The basic principle of Elliott wave theory is that progress is made in five -waves and corrected in three waves. There are three types of corrective patterns, Zigzag, Flat, andContinue reading “Examination of Two Major Bear Markets”
Secondary Bottom Could be in Place
The 05/13/22 blog “Momentum Indicator Review – 05/13/22” noted that “Since the S&P 500 (SPX) 03/29/22 top the rallies have not lasted longer than three- trading days.” For three full trading days after the 05/12/22 bottom, US stocks indices had powerful rallies. Then 05/18/22, right on cue the bears initiated a vicious counterattack. The NasdaqContinue reading “Secondary Bottom Could be in Place”
Fibonacci Price and Time Connections
It’s possible that the S&P 500 (SPX) decline since the start of 2022 is the fourth Primary degree wave of a five – wave Elliott impulse pattern that began in March 2009. This theory was examined in the 02/27/22 blog “S&P 500 Long – Term Elliott Wave Count – 02-25-22”. The SPX April to JuneContinue reading “Fibonacci Price and Time Connections”
Whipsaw Action
On 04/28/22 it was announced that the first quarter US – GDP decreased. US stocks had a big rally on this bearish news. The next trading day US stocks had a big decline wiping out the prior day rally. On 05/04/22 the FOMC announced an interest rate increase. US stocks had a big rally onContinue reading “Whipsaw Action”
Long – Term S&P 500 – Elliott Wave Count 05-03-22
The S&P 500 (SPX) rally from 05/02/22 to 05/03/22 looks like a corrective pattern which implies the SPX could go below the 05/02/22 bottom. The monthly SPX chart courtesy of Trading View illustrates the long- term Elliott wave count. Within Elliott motives waves there’s usually a Fibonacci relationship between waves “two” and “four”. The SPXContinue reading “Long – Term S&P 500 – Elliott Wave Count 05-03-22”
Sharp Stock Reversal – Part – Three
Objectivity is the most important trait that traders must have. Traders objectively analyze the balance of evidence before acting. If the evidence indicates a market/stock could rise – it does rally but is subsequently quickly reversed, then conditions have change. If conditions changed, then you must objectively view the new evidence produced from the change.Continue reading “Sharp Stock Reversal – Part – Three”
Sharp Stock Reversal – Part – Two
Today 04/22/22 the powerful stock decline that began 04/21/22 continued through the entire trading session. Today at the S&P 500 (SPX) open, traders sold half of a 50% long position on non-leveraged SPX related funds. The long entry was at the open of the SPX 04/18/22 session. SPX open price on 04/18/22 was 4385.63. SPXContinue reading “Sharp Stock Reversal – Part – Two”
Sharp Stock Reversal
Today 04/21/22 the S&P 500 (SPX) opened above the high made on 04/20/22. The rally lasted only 21 – minutes, what followed was steep drop that continued throughout the trading day. The few rally attempts were shallow, the bears dominated. The 5 – Minute SPX chart courtesy of Trading View illustrates the action. The rallyContinue reading “Sharp Stock Reversal”
Possible S&P 500 – Full Moon Bottom 04-18-22
There was a Full Moon on Saturday 04/16/22, using a leeway of plus two trading days targeted either 04/18/22 or 04/19/22 for a possible S&P 500 (SPX) bottom. On 04/18/22 the SPX made a new low of the decline that began on 03/29/22. The low for the day was 4370.30, main Fibonacci support noted inContinue reading “Possible S&P 500 – Full Moon Bottom 04-18-22”
Four Dimension Trading 