SPX500USD Is Going Up! Buy!
Here is our detailed technical review for SPX500USD.
Time Frame: 6h
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is approaching a key horizontal level 4138.3.
Considering the today's price action, probabilities will be high to see a movement to 4216.4.
P.S
Please, note that an overbought condition can last for a long time, and therefore being overbought doesn't mean a price rally will come soon, or at all.
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US SPX 500
S&P 500: Roaring Twenties 2.0 Bullish Harmonic FractalIn the lead up to the 1920s, the US Federal Reserve significantly increased its balance sheet by almost nine times, starting from 700 Million Dollars in December 1916 to 6.6 Billion Dollars by January 1920. This move was presumably to fund the US's entry into the First World War, which led to an increased demand for US government debt globally and loose lending conditions domestically, and low rates thereby encouraging a round of inflation in the US. However, after the war ended, the Fed stopped increasing the balance sheet, and between 1920 and 1922, they began to reduce it from the already elevated $6.6 billion to $4.8 billion, almost a 30% cut in just two years.
This action successfully controlled inflation but did not eliminate it completely, yet the dollar gained significant buying power, resulting in a somewhat disinflationary period. As a response to this, the Fed maintained the balance sheet within a tight range around $4.8 billion for a decade, neither raising nor lowering it much but the federal reserve did continue to significantly lower the interest rates; During this time, equities rallied.
While the 1920s were a period of economic growth and prosperity, there were warning signs of overheating towards the end of the decade. Investors were becoming overly speculative, leading to a surge in stock and real estate prices, while lending standards declined and consumer spending continued to rise rapidly.
To counteract these inflationary pressures, the Federal Reserve implemented policies to tighten credit conditions; They doubled interest rates and also raised reserve requirements for banks, which reduced the amount of money available for lending.
In essence this would kickstart The Great Depression which could have instead been a Simple Recession if only the fed had acted sooner as it wasn't their intention to crush the market but rather they just wanted to cool the market down a bit to contain inflation.
Years deep into the Great depression, the Federal Reserve realized they had gone too far. So, to fix this, they would begin to raise the balance sheet again while also cutting rates drastically in an effort to relieve pressure from the economy and promote new opportunities for economic growth, which then led to a new expansionary cycle.
With that all being said, it would appear that the Fed is doing now what it was doing back then. Over the last decade, they raised the balance sheet by 900% and lowered interest rates by over 95%. Only over the last year, they have begun to reduce the balance sheet by about 10% while raising rates by over 1500%. If we are to go off of the Harmonic Fractals on the chart, then we are likely nearing a point in time where the Fed will begin to loosen rate policy and bring the balance sheet back to all-time highs. This would align with the S&P reaching a 2.618 - 4.00 Retraces as the Fed attempts to keep policy as loose as possible in the hopes that inflation won't come back to bite them. But once we reach harmonic targets, we will likely see inflation return in a great way, which would then force the Fed to induce another Great Depression in the next several years rather they want to or not.
Technical Argument: ABCD BAMM, after breaking a long accumulation range and entering a long term expansionary cycle, we are now in the later phases of said cycle while showing heavy amounts of MACD Hidden Bullish Divergence and harmonically have room to go up significantly higher before it ultimately reaches D and comes to an end.
ES1! SPX500USD 2023 APR 17 WEEKCME_MINI:ES1!
ES1! SPX500USD 2023 APR 17 WEEK
Friday's bar closed below 4175 and showed a rejection
of higher prices.
Scenario Planning:
1) Rejection short at 4175
2) Market rotation continues = trade at boundary (80pt range)
of range (grey box)
3) Rotation breakout long at support of 4175
Volume Analysis:
Weekly: Ave vol up bar close off high = minor weakness
Daily: High vol narrow spread S>D bar = weakness
Price reaction levels:
Short = Test and Reject | Long = Test and Accept
4303 4175 4096
3928 3788
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Have a profitable trading week.
SPX to find support at trend line?US500 - Intraday - We look to Buy at 4096 (stop at 4066)
Posted a Bullish Outside candle on the Daily chart.
There is no sign that this bullish momentum is faltering but the pair has stalled close to a previous swing high of 4153.
The bias remains mildly bullish but there is scope for a move in either direction at the open.
Trading within a Bullish Channel formation.
Further upside is expected although we prefer to set longs at our bespoke support levels at 4091, resulting in improved risk/reward.
Our profit targets will be 4166 and 4186
Resistance: 4155 / 4196 / 4230
Support: 4091 / 4047 / 4018
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The trade ideas beyond this page are for informational purposes only and do not constitute investment advice or a solicitation to trade. This information is provided by Signal Centre, a third-party unaffiliated with OANDA, and is intended for general circulation only. OANDA does not guarantee the accuracy of this information and assumes no responsibilities for the information provided by the third party. The information does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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SPX500USD Is Very Bearish! Sell!
Here is our detailed technical review for SPX500USD.
Time Frame: 2h
Current Trend: Bearish
Sentiment: Overbought (based on 7-period RSI)
Forecast: Bearish
The market is approaching a key horizontal level 4139.3.
Taking into consideration the current market trend & overbought RSI, chances will be high to see a bearish movement to the downside at least to 4112.4 level.
P.S
The term oversold refers to a condition where an asset has traded lower in price and has the potential for a price bounce.
Overbought refers to market scenarios where the instrument is traded considerably higher than its fair value. Overvaluation is caused by market sentiments when there is positive news.
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The importance of your current locationHello?
Traders, welcome.
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(NAS100USD chart)
In order to continue the upward trend from a long-term perspective, it must rise above the HA-Low indicator on the 1M chart.
From a mid- to long-term perspective, it is located in the 12896.2-13418.8 section, which is the current volume profile section.
Therefore, in order to show a full-fledged upward trend, it is expected that it will be possible to rise above 13231.6-13480.9.
If that doesn't happen and it goes down, you should check for support near 12497.5.
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(SPX500USD chart)
The key is whether it can rise above 4116.0-4123.5 and whether it can rise above 4169.6 to receive support.
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(DXY chart)
The key is whether resistance can be found below 102.020, that is, below 101.494.
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** All descriptions are for reference only and do not guarantee profit or loss in investment.
** Even if you know other people's know-how, it takes a considerable period of time to make it your own.
** This is a chart created with my know-how.
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The S&P 500 BottomTop of mind for investors and traders right now is whether or not the S&P 500 has reached its bottom. While this is an impossible question to answer and depends on which timeframe one is looking for a bottom, I will attempt to provide an general analysis below.
First, the chart above is a quarterly chart (each candle represents a 3-month period) of the S&P 500. The pink line and shaded area represent periods of U.S. recessions as designated by data published by the Federal Reserve. The white line is the 20-period moving average.
The 20-period moving average is the most commonly used reference point for the mean (average) price of the time period being analyzed. The 20-period moving average is also the mean of the Bollinger Bands, which are used to detect how over- or under-extended price is relative to its mean.
GDP data suggest that we were technically in a recession in the first half of 2022. In the past 50 years, every recession has seen the S&P 500 revert down to its mean on the quarterly chart. Even the mild recession in the early 1990s, which hardly anyone remembers today, nearly tagged the mean. In fact, most recessions saw further downside movement. During the Dotcom Bust and the Great Recession the S&P 500 declined all the way to the lower Bollinger Band on the quarterly chart (as shown below).
The current stagflationary period (where inflation is elevated and economic growth is low) is most similar to the stagflationary period of the 1970s. During this period, we had a series of intermittent recessions and a relatively flat stock market over a period of about a decade. As you can see in the chart below, during each recession, the S&P 500 bottomed at either the mean of the Bollinger Band or down at the lower band (on the quarterly chart).
It was not until Paul Volcker sent interest rates to the moon that inflation finally ended in the early 1980s. Every yearly chart I've analyzed suggests we have entered into a period of stagflation and we will likely see higher inflation, higher unemployment, higher interest rates, and intermittent recessions for years to come. This is happening while the yearly S&P 500 Stochastic RSI oscillator is trending down sharply following more than a decade of rapid stock market expansion.
So far as of writing, we have not reached the S&P 500 mean on the quarterly chart. There is an overwhelming likelihood that, at some point in the future, we will. Nonetheless, traders ought not to base their trades on slowly moving yearly charts, as even in a prolonged downturn there can be lucrative intermediate-term long opportunities. Indeed, the quarterly mean (20-period moving average) moves up over time, and when we do revert down to it, that price may be higher than the current price.
Here are some other arguments for why we may have seen an intermediate-term bottom of the S&P 500 --
First, seasonality: As you can see in the seasonality chart below, the month of June often puts in the low for the year, which is sometimes retested in the August through October period (highlighted in yellow).
Second, Fibonacci levels: As you can see, June's price action bounced off an important Fibonacci level.
Price is also technically being supported on the third Fibonacci spiral from the Great Depression high as shown below (though this is precarious when viewed on the yearly timeframe).
Third, the intermediate term oscillators are starting to create a bias of momentum to the upside as shown in the chart below.
Fourth, the chart of the ticker S5TH is breaking out. The S5TH ticker simply represents the number of stocks in the S&P 500 that are above their 200 day moving average. This is extraordinarily bullish and a warning signal to those holding short positions.
Fifth, there has been a clear bullish breakout of the Advance Decline Line (ADL), as shown in the chart below. The advance-decline line is a technical indicator that plots the difference between the number of advancing and declining stocks on a daily basis. The advance-decline line is used to show market sentiment, as it tells traders whether there are more stocks rising or falling. Right now it is signaling a bullish reversal.
There are other bullish signals occurring as well, such as improving sentiment in the Put-Call Ratio and in the Fear-Greed Index.
Although all of these indicators are turning bullish. We still need to see the VIX break down below its trend line and the dollar index (DXY) to start declining, the latter of which will likely happen.
About a month ago, I questioned whether the DXY would top at its Fibonacci level, and indeed it formed an upper wick and came right back down to this level before the close of July, forming a bearish inverted hammer. There were many dollar index bulls who thought at the time that I was being ridiculous, but the charts were showing clear bearish divergence and there was very little chance that the dollar index (DXY) would blast past this important Fibonacci level while being so over-extended. I ignore all noise in the market and focus solely on what chart is saying. Charts are mathematical, statistical, and predictable. Charts also do not lie.
While anything can happen, it's quite certain that the coming months and years will be quite a roller coaster. There are very few people who are prepared for the magnitude of stock market decline that could happen now that unlimited quantitative easing is no longer sustainable.
I'll be posting updates along the way.
Look first, then leap!
➖15% S&P500 Index drop by H&S pattern💣The S&P500 index is moving near the resistance line and 🔴resistance zone($ 4,200- $ 4,100)🔴.
The S&P500 index also seems to be forming the right shoulder of the Head and Shoulders pattern in the 🟡Time Reversal Zone(TRZ)🟡.
I expect the S&P500 index to drop to the 🟢support zone($ 3,590-$ 3,490)🟢 after breaking the neckline.
S&P500 Index (SPXUSD) Analyze Daily time frame⏰ (Log Scale).
Do not forget to put Stop loss for your positions (For every position you want to open).
Please follow your strategy, this is just my idea, and I will gladly see your ideas in this post.
Please do not forget the ✅' like'✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
Bullish above last month HIGH Buy signal still valid SPX SPY SNPWith all the Doom & Gloom regarding recession worries we liked our idea even more so into Q1 close last month.
So far so good however we are still very early in Q2.
We remain bullish above last months high (March 2023)
Seeking Pips will be managing our positions on the Weekly and Daily charts.
We also note that the current price is also in a key Fib retracement zone to SELL SPX on the monthly chart so we will not be surprised to see another pullback, again we would consider adding to our core position if this happens and volatility is right.
Our Bull & Bear price level is clear and as long as we above it we want to be buyers only.
A failure of March 2023 Low we would have to revaluate our current thesis.
Happy trading have a GREAT WEEK.!
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SPX500USD H1Price has made an inverse head on shoulders pattern & closed above the neckline to finish off last week. This upcoming week, I am looking for price to retest the broken neckline resistance, as new support for price to resume higher into resistance & complete the pattern. Price is in a strong uptrend as well, which makes this pattern more powerful ..
whether it can break through the volume profile sectionHello?
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(NAS100USD chart)
During the volatility period, it rose to the volume profiel section of 12896.2-13418.8.
It is expected that the trend will be determined by whether there is support or resistance in this area.
Therefore, if it rises, it is expected to continue the upward trend only when it rises above 13231.6-13480.9.
Conversely, it is expected to continue the downtrend only when it falls below 12716.0-12896.2.
If it rises above 13480.9, there is a possibility of a sharp uptrend.
If it falls below 12716.0, it is important to find support around 12497.5.
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(SPX500USD chart)
The key is whether it can rise above 4116.4123.5 and be supported.
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(DXY chart)
After the volatility period around April 3, it shows a decline below 102.020.
Therefore, the question is whether resistance can be found below 101.494.
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** All descriptions are for reference only and do not guarantee profit or loss in investment.
** Even if you know other people's know-how, it takes a considerable period of time to make it your own.
** This is a chart created with my know-how.
---------------------------------
SPY S&P 500 etf Head and Shoulders Chart Pattern. Options to BuyIt looks like a Head and Shoulders Chart Pattern is forming in the chart of SPY S&P 500 etf.
Because I believe we are about to see SPY trading at the neckline of the H&S, I`m considering the following puts:
2023-5-19 expiration date;
$389 strike price;
$4.10 premium to pay.
Looking forward to read your opinion about it!
Volatility Period: Around March 30th - Around April 3rdHello?
Traders, welcome.
If you "Follow", you can always get new information quickly.
Please also click "Boost".
Have a good day.
-------------------------------------
(NAS100USD chart)
The important volume profile section is the 12896.2-13231.6 section.
Therefore, in order to ascend to 12896.2-13231.6, we need to make sure that we can rise with support in section 1.
If it fails to rise, you should check for support around 12497.5.
The next volatility period is around March 30th - April 3rd.
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(SPX500USD chart)
We need to see if we can sustain the price by rising above 3984.7-4000.0.
If not, you need to make sure it is supported around 3774.9-3845.4.
Whether it can rise above 4116.0-4123.5 is the key.
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(DXY chart)
It is necessary to check which direction it is deviating from the 102.020-103.494 section.
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** All descriptions are for reference only and do not guarantee profit or loss in investment.
** Even if you know other people's know-how, it takes a considerable period of time to make it your own.
** This is a chart created with my know-how.
---------------------------------
US500 | S&P500 | Everyone is Looking to Enter Sell so Let's SellS&P500 is at so called Major Resistance.
Institutes, Banks, Retail and every single person looking at this chart is looking for a sell.
CPI is coming 2 hours from now.
Take positions now or after CPI
There will be huge volatility in this time so Manage Risk Accordingly.
That's it.
S&P 500 Bullish Consolidation ContinuesStock markets have been uninspiring so far today, mainly due to the lack of fresh catalysts to encourage market participants to trade. At the time of writing, the markets were holding losses in Europe and US. That said, the losses were limited, and lacked any real momentum. So, we may yet see some bargain hunting later in the session for some downbeat stocks, which could lift the indices. Understandably, some investors are having a hard time to make up their minds on the direction of asset prices. Question marks remain over how the bank crisis will play out, and whether the Fed will hike or hold interest rates at the next FOMC meeting. To make things worse, there isn’t an awful lot on the economic calendar this week until Friday when we will get the Fed’s preferred measure of inflation data. But we did see a gauge of US consumer confidence (CB) unexpectedly improved in March.
All told, the market is basically inside a large consolidation zone, but with a slight bullish tilt thanks to receding fears over banks.
S&P 500 technical analysis
The S&P 500 has been coiling around its 200-day average, suggesting that it is gearing up for a potentially sharp move. The index has poked its head above the bearish trend line on a couple of occasions, but so far unable to show any bullish follow-through. Will that change this week?
The bulls will not want to see the index close below Monday’s low around 3968, and certainly don’t want to see it drift back towards Friday’s low at 3905. On Friday, the S&P and several other global indices formed large bullish hammer candles. The bulls now need to see some upside follow-through above these candles.
So, watch out for a possible move higher above Friday’s high at 3980 to potentially trigger a short squeeze rally.
-- Written by Fawad Razaqzada, Market Analyst
Follow Fawad on Twitter @Trader_F_R
Visualizing the Current Market in Relation to Past RecessionsIt is helpful to view past recession trajectories to get a visual idea of where we are at the moment. I chose the recessions which were most relevant to today's market conditions. The 01 (purple) and 08-09 (dark blue) recessions were the first "modern" recessions where MMT was being implemented and tech made up a significant chunk of the market. The 70 (reddish brown) and 73-75 (green) recessions were the first stagflation recessions of the 70s. Finally, the Great Depression (light blue) is shown as a worst case scenario. If this current period mirrors history, a bounce or sideways movement through the rest of 2022 wouldn't be surprising. While a depression trajectory is possible, I don't believe it is most likely at this point.