I decided to take a look at the S&P and see how we are doing overall. Many of the talking heads and people on Twitter are beginning to talk about a melt up. Let's take a basic look at the S&P to try to get a better understanding of where we are trading and maybe where we might be going.
It looks like we are inside a long wide channel that helps understand maximum possible movement of the market.
Inside that channel we have created a new narrow channel following the beginning of the Fed balance sheet expansion.
If we zoom into the S&P within this new channel we can see a rising wedge.
The FIB levels seem to be quite important here. They continue to be tested with our next level around the 3350-3360 level.
If this rising wedge is tested at 3350, and continues to 3560 we should watch for a large reversal and especially if it hits the new level outside of the long wide channel. If this happens around the time the Fed stops the repo madness, we should be very careful.
RSI has begun trending down which might point to a bit of caution entering the market.
End of January is a key time, both from an earnings aspect as well as it looks like where these trend channel levels meet FIB levels.
Good luck traders. Hopefully this is helpful, let me know in the comments. Thanks.
It looks like we are inside a long wide channel that helps understand maximum possible movement of the market.
Inside that channel we have created a new narrow channel following the beginning of the Fed balance sheet expansion.
If we zoom into the S&P within this new channel we can see a rising wedge.
The FIB levels seem to be quite important here. They continue to be tested with our next level around the 3350-3360 level.
If this rising wedge is tested at 3350, and continues to 3560 we should watch for a large reversal and especially if it hits the new level outside of the long wide channel. If this happens around the time the Fed stops the repo madness, we should be very careful.
RSI has begun trending down which might point to a bit of caution entering the market.
End of January is a key time, both from an earnings aspect as well as it looks like where these trend channel levels meet FIB levels.
Good luck traders. Hopefully this is helpful, let me know in the comments. Thanks.
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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.
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.