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Correction

Some Down Side to come Hey All, Just some food for thought but We have multiple charts showing some downwards pressure coming to markets all are shown below and with the CPI coming out this week and Fed rate decision we have the catalyst for another sell off. We have an Weekly engulfing bearish candle on the SP500, Vix bouncing off a falling wedge and trend line, US dollar also bouncing off support line and possible head and shoulders developing on it, Silver with negative divergence and both the 2yr and 10 yr bond yields bouncing off trend support lines. All of these charts point that pain is coming to the market. My belief is we will retest the previous low at least then find some buyers possibly rallying back from there or as indicated on the chart maybe another pump and dump lower but we wont know until we reach that point. I do think this will be the last leg down for a while until later in 2023 as company health and earnings will be the bigger question on the markets mind as rates will stagnate. This would follow previous rate and market movements in previous corrections for example rates in 2007 stagnated but markets then declined and recession in 2008, 1999 rates started to stagnate then in 2000 recession and market decline started same in 94-95 and 87. I feel the main charts to focus on at the DXY and the yields if the dollar creates the head and shoulders pattern we could see a strong short squeeze of the previous low on the SP500 and Dollar start falling but we will know if there is more pain after that if yields start stagnating or increase more.
TVC:SPXShort
by jackwheeler
MOMENTUMB and MARKET CORRECTIONHello everyone! Today I want to draw your attention to the momentum and price correction. In fact, any price movement consists of an impulse and a correction. You can earn money on each of these phases. Impulse An impulse movement is a strong price movement towards the main trend. As a trader, it is right that you should open positions in this direction. This movement is quite easy to identify. How correctly an impulse movement will spend less time covering a longer distance than a corrective movement. The impulse has a large force that pushes the price in the right direction, so the movement is strong and fast. Correction The corrective movement is characterized by a smaller force of movement. Very often, the correction will move in one corridor without much updating of the highs or lows. The fact is that with a corrective movement in the price, there is not enough force to update the maximum or minimum. The movement will be weak, resembling trampling on the spot. Of course, you can earn money in such a period, but it will be more difficult to do this than when trading on impulse movement. In addition , there is always a risk that the trend will pick up again and push the price against you and very quickly . You simply won't have time to close a position if you haven't set a stop loss. Support and resistance It is important to note how the level from which the price makes a reaction is first support, then resistance when breaking through. This is a frequent occurrence in all markets. The impulse conceals a force that cannot break through the level immediately, so the correction begins and the accumulation of new energy to overcome the level. After that, a breakdown occurs. At this point, support becomes resistance. The price during the correction, as we remember, does not have sufficient strength to update the maximum and the level becomes a resistance that the price cannot pass. The correction rests on the level and failed to overcome it. And this structure is quite common. Conclusions The main conclusion is simple - trade according to the trend. Learn to identify impulse movement and corrective movement, so it will be easier for you to determine the trend. Watch how the price reacts to the levels. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
13
$DXY Correction?The DXY has been on a rip in 2022 with the US Dollar rising significantly against major currencies. This channel has been pretty consistent and the latest price point is at the peak of it. A strong DXY tends to correlate with weak stocks and risk on assets. Vice versa, a correction here would provide some relief for the markets and currency pairs such as the EUR and GBP which have been in free fall this year. I'm not convinced the DXY breaks that upper resistance here, especially with the mid terms around the corner. I'd expect a correction and then the macro / risk on/off environment will determine whether the price rebounds nearer the bottom of the channel. I'm mid to long term bearish on the economy therefore I don't believe we've seen the top of this DXY run. Nevertheless, those trading short term may find value in this price action and correlation.
TVC:DXY
by Zeahl_Capital
USD/CAD corrective mess triangle/complex correctionthe wave count dictates that we are in wave X of a minute degree and yet we haven't show the complete pattern so here is the probabilities: 1) Triangle : it is the highly probable pattern, and since the wave B/X is smaller than A/W and wave C/Y is bigger than wave B/X allows us to assume that a probable triangle would be a barrier triangle, with that being said we should anticipate price being supported at the red line, currently price has made and distinguishable abd correction but even with the NFP report coming out it positive for the Green price couldn't complete wave D this indicates to us that price is preparing a WXY correction inside of wave D but this still remain to the price to make it. 2) WXY : this is probable if price hasn't been supported at the red line we can assume that this corrective pattern is not a triangle which led us to this probability (WXY correction) but we cannot confirm this count until the price break the green line that server us as a support . 3) WXYXZ : as all wave practitioner i do know that this correction is rare but it still possible if price didn't visit the red support and continue it's rising.
Short
by Wyckoff_Monk