I firmly believe that the economy is going to crash under the incompetence of the Biden Administration and the catastrophic losses will be more than the MSM can suppress or spin.
However, at the end of the day the market will do what it does irrespective of what I believe and I can only trade what the market is showing me.
Right now the S&P 500 daily chart which I posted above is showing that the index has been gradually floating up in about a 150 point trading range. When it gets to the low of that channel I’ve been looking for long positions to day trade. Usually it makes that low in the morning and then floats up pretty quickly. Except today. There haven’t been good bounces off of the low end of the channel and if it can’t get back up to the highs by end of week or early next week, this makes me thing the channel is close to breaking.
This channel is going to break eventually. They always do. The important thing is that you have to watch it break first, you can’t get suckered into shorting the low and then getting reversed back up. I have had it happen to me multiple times. This thing might be faking a breakdown just to short squeeze up to 4000.
Watch for this thing to break, and on the day that it gets a deep close under the channel line be on watch for further downside.
When it breaks I think the first stop is 3580 which is about 7% off of all time highs. I think it gets a crappy bounce in that area at best and heads to 3390 which is about 11% off all time highs. However, the real question is if it can get down to 3230 which would be a 16% drop off the all time highs. That would totally rock the Biden Regime especially if this happens within the first several months of taking office.
That’s still a ways to 50% but I’ll discuss my thoughts on that if this breakdown I’m envisioning starts to unfold. For now, just watch that channel on the S&P 500 Daily.
this is the daily candlestick chart of the S&P 500. You can set it up for yourself on their web site and track the trend channel in the chart above.
Price is gradually floating up within a trading range. Eventually all trading ranges break one way or the other. I think that this will break to the downside soon, like within days to weeks. By break I mean it the candlestick closes below the trendline and then is followed by additional closes below that channel low.
Buyers make prices go up, if prices are not going up that means buyers are not stepping up. This kills the upward momentum we've had which is already at all time highs and induces smart money bulls to take profits and smart money bears to short sell the market. This process accelerates and causes sell offs.
Since we are at such elevated levels on the S&P 500 I expect for a flush to occur with an initial drop to 3580 within days of the channel break. The question is will that trigger further selling or will dip buyers step up. I think more selling will unfold.
The important thing though is to initially focus on that channel low to see what the market is thinking. If it holds, then the float up continues. If it breaks, look out below!
I firmly believe that the economy is going to crash under the incompetence of the Biden Administration and the catastrophic losses will be more than the MSM can suppress or spin.
I believe that the S&P will crash 50% in his first year in office as outlined in an earlier post. https://patriots.win/p/11S0uRpLmh/prediction-sp-crashes-50-in-2021/
However, at the end of the day the market will do what it does irrespective of what I believe and I can only trade what the market is showing me.
Right now the S&P 500 daily chart which I posted above is showing that the index has been gradually floating up in about a 150 point trading range. When it gets to the low of that channel I’ve been looking for long positions to day trade. Usually it makes that low in the morning and then floats up pretty quickly. Except today. There haven’t been good bounces off of the low end of the channel and if it can’t get back up to the highs by end of week or early next week, this makes me thing the channel is close to breaking.
This channel is going to break eventually. They always do. The important thing is that you have to watch it break first, you can’t get suckered into shorting the low and then getting reversed back up. I have had it happen to me multiple times. This thing might be faking a breakdown just to short squeeze up to 4000.
Watch for this thing to break, and on the day that it gets a deep close under the channel line be on watch for further downside.
When it breaks I think the first stop is 3580 which is about 7% off of all time highs. I think it gets a crappy bounce in that area at best and heads to 3390 which is about 11% off all time highs. However, the real question is if it can get down to 3230 which would be a 16% drop off the all time highs. That would totally rock the Biden Regime especially if this happens within the first several months of taking office.
That’s still a ways to 50% but I’ll discuss my thoughts on that if this breakdown I’m envisioning starts to unfold. For now, just watch that channel on the S&P 500 Daily.
Please educate. What are the terms you are graph8ng and their importance?
https://www.investing.com/indices/us-spx-500-futures-advanced-chart
this is the daily candlestick chart of the S&P 500. You can set it up for yourself on their web site and track the trend channel in the chart above.
Price is gradually floating up within a trading range. Eventually all trading ranges break one way or the other. I think that this will break to the downside soon, like within days to weeks. By break I mean it the candlestick closes below the trendline and then is followed by additional closes below that channel low.
Buyers make prices go up, if prices are not going up that means buyers are not stepping up. This kills the upward momentum we've had which is already at all time highs and induces smart money bulls to take profits and smart money bears to short sell the market. This process accelerates and causes sell offs.
Since we are at such elevated levels on the S&P 500 I expect for a flush to occur with an initial drop to 3580 within days of the channel break. The question is will that trigger further selling or will dip buyers step up. I think more selling will unfold.
The important thing though is to initially focus on that channel low to see what the market is thinking. If it holds, then the float up continues. If it breaks, look out below!