Based on conventional wisdom the SPX monthly chart looks super bullish with the big wick.
I want to explain how this can be misleading. For some "Creds" on the idea, I've attached a post made at almost exactly the low where I forecast the wick and spikes while stating this could be inside of a bearish setup. In the bearish setup, we'd often get bad news around this price.
These candles can be bullish, of course - I don't think I need to insult your intelligence by explaining the bullish read on these candles. You know them.
But did you know you also see one of these in almost every major top in history?
I just posted almost every notable drop from 2008 to 1966.
Here's a recent one.
I could go and start posting examples from the 1910s, but I hope I've made my point.
If it's a wick trap at a top, we generally will see a capitulation month within 3 months.
Usually, it'd be next month with this month closing weak to make a wick on top.
I want to explain how this can be misleading. For some "Creds" on the idea, I've attached a post made at almost exactly the low where I forecast the wick and spikes while stating this could be inside of a bearish setup. In the bearish setup, we'd often get bad news around this price.
These candles can be bullish, of course - I don't think I need to insult your intelligence by explaining the bullish read on these candles. You know them.
But did you know you also see one of these in almost every major top in history?
I just posted almost every notable drop from 2008 to 1966.
Here's a recent one.
I could go and start posting examples from the 1910s, but I hope I've made my point.
If it's a wick trap at a top, we generally will see a capitulation month within 3 months.
Usually, it'd be next month with this month closing weak to make a wick on top.
We may be inside of a crash event to 3000 in SPX.
Read the full case with backlog of historic analysis/forecasts here: holeyprofitnewsletter.substack.com/p/the-case-for-3000-in-spx
Read the full case with backlog of historic analysis/forecasts here: holeyprofitnewsletter.substack.com/p/the-case-for-3000-in-spx
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
We may be inside of a crash event to 3000 in SPX.
Read the full case with backlog of historic analysis/forecasts here: holeyprofitnewsletter.substack.com/p/the-case-for-3000-in-spx
Read the full case with backlog of historic analysis/forecasts here: holeyprofitnewsletter.substack.com/p/the-case-for-3000-in-spx
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.