This week the markets have been getting battered as I predicted earlier in the week. Many people on the message boards are adamant that we will reverse and reach a new high, but from my analysis I just don't see it.
I trade using SMA's, RSI, and Elliott Wave Theory. From the conclusion I've gathered from top EW analysts that I follow on Tradingview and other subscription websites, we reached the top of Wave 5 on Tuesday. The cluster of candles is quite similar to other clusters during the time of a reversal where we see a slow push to the price target, then a final push before trending downward.
As far as SMA analysis, the 6 and 10 have started curling over to the downside and SPY is currently resting on the 20 SMA. Once the 6 and 10 SMA cross below the 20 SMA, we tend to see selling pick up until it reaches the 45 SMA. Once those aforementioned SMA's cross below the 45 SMA, we typically see the greatest amount of selling. I'm looking for the next SPY move to send us down to 542 which places us directly to the 45 SMA. We may rest there for a few days or reverse, but that will come on a later post when we get to that level.
The black lines represent gaps that are still waiting to be filled. I believe we are well on our way to having one of those gaps filled very soon.
As always, best of luck to everyone and stay frosty tomorrow!
I trade using SMA's, RSI, and Elliott Wave Theory. From the conclusion I've gathered from top EW analysts that I follow on Tradingview and other subscription websites, we reached the top of Wave 5 on Tuesday. The cluster of candles is quite similar to other clusters during the time of a reversal where we see a slow push to the price target, then a final push before trending downward.
As far as SMA analysis, the 6 and 10 have started curling over to the downside and SPY is currently resting on the 20 SMA. Once the 6 and 10 SMA cross below the 20 SMA, we tend to see selling pick up until it reaches the 45 SMA. Once those aforementioned SMA's cross below the 45 SMA, we typically see the greatest amount of selling. I'm looking for the next SPY move to send us down to 542 which places us directly to the 45 SMA. We may rest there for a few days or reverse, but that will come on a later post when we get to that level.
The black lines represent gaps that are still waiting to be filled. I believe we are well on our way to having one of those gaps filled very soon.
As always, best of luck to everyone and stay frosty tomorrow!
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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.