S&P 500 IndexLong
SPX - A continued buying opportunity? [February]
G'Day traders & analyst,
Master Key for zones
Risk Warning
Trading leveraged products such as Forex, commodities and CFDs, carries with it a high level of risk and so may not be suitable for every investor. Prior to trading the foreign exchange, commodity or CFD market, consider your investment objectives, level of experience and risk appetite. You should never risk more than you can afford to lose. If you fail to understand or are uncertain of the risks involved, please seek independent advice and remember to conduct due diligence.
Firstly why has the SPX and US30 become so bullish?
Simply put, as the FED Funds have been slashed - and with yields being key to movements of both institutional and retail - credit deposits provide a little return so if the trend is up and to the right, then a standard metric is sure, keep on investing regardless of the high value. This keeps the Shiller ratio and price earnings ratio are seen as "this seems fine" (to view the website to review these metrics, click the link below) - multpl.com/s-p-500-pe-ratio. To further understand this, the use of the cross-asset comparison shows a simplistic view but also a reality.
SPX Daily chart
A rising channel has always bounced of multiple levels, creating higher lows and subsequently pushing higher towards higher highs to be created.
10 year yields rise, with a 7 year inflation - who would hold bonds during period? The movement of cash exodus from foreign bond holders to place elsewhere has assisted in the fuel.
The money from the bond market flows - will be placed into the SPX or NAS100, Small caps other assets.
Key:
* White = channels
* Orange = higher high trendline
Buying was present upon the weekly imbalance [purple]
Please note, nothing is confirmed, until confirmations are in place using a daily confirmation for example. Time spans may differ for those with different strategies.
SPX for those who love moving averages
Here is the 200MA, where price is now trading below the 200.
What are your thoughts using this simple technical analysis tool?
Could this be a fakeout for the sellers?
The low has been made, with now two lower high formations which have proved considerable moves to keep a bullish move intact.
This corresponds to the weekly imbalance tap.
Buying opportunity?
An opportunity for a 22.74% est buy opportunity, to those who use Fibonacci as extension targets.
Looking to the SPX and the S5TH which refers to the SPX stocks which are trading under the 200MA.
The weekly has provided a key move
Consumer Sentiment Weekly UMSCENT
The Fed has been consuming QE, but ultimately will raise inflation if they feel necessary - despite after down turns.
Monetary policy can either tighten or never tighten again - the university of Michigan tracking of consumer sentiment has provided key information that the "average person" is feeling the crunch, where the down turn of sentiment highs have created a low on the weekly, and bounced back, but ultimately now is beginning to show signs of bearish action, where consumer lows at the monthly imbalance - shows Fibonacci retracement extension targets align.
VIX weekly
Where we are now as at 25/01/2022
Using the tracking below, it is now clear to see the volatility movements which of course takes time to form, but spotting it early like we saw, shows the strong monthly and weekly imbalance which needed a strong suppressive test.
ST LOUIS FED 10year breakeven chart
https://fred.stlouisfed.org/series/T10YIE
Do you enjoy the setups?
*Professional analyst with 5+ years experience in the capital markets
*Focus on technical output not fundamentals
*Position and swing trades
*Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXII
Master Key for zones
- Red = Three Month
- Blue = Monthly
- Purple = weekly
- Scarlet [Red] - Four day
- Orange = Daily
Risk Warning
Trading leveraged products such as Forex, commodities and CFDs, carries with it a high level of risk and so may not be suitable for every investor. Prior to trading the foreign exchange, commodity or CFD market, consider your investment objectives, level of experience and risk appetite. You should never risk more than you can afford to lose. If you fail to understand or are uncertain of the risks involved, please seek independent advice and remember to conduct due diligence.
Firstly why has the SPX and US30 become so bullish?
Simply put, as the FED Funds have been slashed - and with yields being key to movements of both institutional and retail - credit deposits provide a little return so if the trend is up and to the right, then a standard metric is sure, keep on investing regardless of the high value. This keeps the Shiller ratio and price earnings ratio are seen as "this seems fine" (to view the website to review these metrics, click the link below) - multpl.com/s-p-500-pe-ratio. To further understand this, the use of the cross-asset comparison shows a simplistic view but also a reality.
SPX Daily chart
A rising channel has always bounced of multiple levels, creating higher lows and subsequently pushing higher towards higher highs to be created.
10 year yields rise, with a 7 year inflation - who would hold bonds during period? The movement of cash exodus from foreign bond holders to place elsewhere has assisted in the fuel.
The money from the bond market flows - will be placed into the SPX or NAS100, Small caps other assets.
Key:
* White = channels
* Orange = higher high trendline
Buying was present upon the weekly imbalance [purple]
Please note, nothing is confirmed, until confirmations are in place using a daily confirmation for example. Time spans may differ for those with different strategies.
SPX for those who love moving averages
Here is the 200MA, where price is now trading below the 200.
What are your thoughts using this simple technical analysis tool?
Could this be a fakeout for the sellers?
The low has been made, with now two lower high formations which have proved considerable moves to keep a bullish move intact.
This corresponds to the weekly imbalance tap.
Buying opportunity?
An opportunity for a 22.74% est buy opportunity, to those who use Fibonacci as extension targets.
Looking to the SPX and the S5TH which refers to the SPX stocks which are trading under the 200MA.
The weekly has provided a key move
Consumer Sentiment Weekly UMSCENT
The Fed has been consuming QE, but ultimately will raise inflation if they feel necessary - despite after down turns.
Monetary policy can either tighten or never tighten again - the university of Michigan tracking of consumer sentiment has provided key information that the "average person" is feeling the crunch, where the down turn of sentiment highs have created a low on the weekly, and bounced back, but ultimately now is beginning to show signs of bearish action, where consumer lows at the monthly imbalance - shows Fibonacci retracement extension targets align.
VIX weekly
Where we are now as at 25/01/2022
Using the tracking below, it is now clear to see the volatility movements which of course takes time to form, but spotting it early like we saw, shows the strong monthly and weekly imbalance which needed a strong suppressive test.
ST LOUIS FED 10year breakeven chart
https://fred.stlouisfed.org/series/T10YIE
Do you enjoy the setups?
*Professional analyst with 5+ years experience in the capital markets
*Focus on technical output not fundamentals
*Position and swing trades
*Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXII
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