Spxsignals
S&P500 Buy SignalPattern: Rectangle into an Ascending Triangle.
Signal: Buy as the price is consolidating on the Higher Low trend-line.
Target: 3,425 (right below the Resistance).
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S&P We may be starting a new 10 year Bull Cycle!S&P's weakness in recent weeks has got many thinking that the rally since the March correction is over and that maybe a new round of selling is ahead of us. On such occasions I have found it extremely useful to consult very long-term time-frames (such as the 1M in this instance) and look how similar patterns traded in the past.
As you see on the current study, the current phase we are in resembles the post Black Monday (1987) price action (even though the recovery after the March COVID collapse has been quicker than that of Black Monday's). What preceded the two events is also identical as displayed by the a-b-c-d sequence. After the (d) leg that breached the 1M MA200, a long term bullish cycle started that was interrupted violently by Black Monday. That is very similar to how S&P traded after the 2000 Dot Com crash and subprime collapse (a-b-c-d) leading to a long term bullish cycle that was violently cut by the COVID sell-off. The RSI and LMACD (as we are on the logarithmic scale) also print similar readings.
If history repeats itself, S&P is not ahead of another sell-off but instead has much greater probabilities of being at the very start of a new 10 year Bull Market! Do you agree with that?
Of course it has to be said that there was no pandemic back then nor catastrophic economy lockdowns. But it has to be said that catalysts in Economics may come in different shapes while having the exact same impact/ weight on the market and peoples' psychology. After all it is psychology with fear and greed that is moving the stock markets.
So are you feel we are ahead of a new Bull Cycle or are you selling, expecting a new bearish hit? Feel free to share your work and let me know in the comments section!
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S&P The 0.618 Fibonacci is the keyThe current sequence on S&P has been seen before, in fact in late June. It was again a Channel Down on the 4H chart with the MACD on a somewhat Inverse Head and Shoulders formation.
The June fractal failed to break above the 0.618 Fibonacci and the Channel made one more Lower Low before the smooth and sustainable 2 month bull run took place.
Coincidentally S&P failed to break the 0.618 Fibonacci today and naturally got rejected. It is obvious that this holds the key to a potentially new sustainable rally, otherwise we might see a new Lower Low within the Channel.
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S&P500 Trading PlanPattern: Channel Up on 4H.
Signal: (A) Bullish as long as the price trades above the middle (white line) of the Channel Up, (B) Bearish if it breaks below.
Target: (A) 3600 (Higher High of the Channel), (B) 3450 (within the 0.5 Fibonacci and former accumulation level).
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S&P Trading PlanPattern: Channel Up on 4H.
Signal: Bullish towards the Higher High trend-line and roughly a +15% extension from the top. Bearish after that towards the 4H MA50.
Target: 3,530 and 3,465 respectively.
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S&P500 Sell SignalPattern: Higher Lows on 4H.
Signal: Sell as the price has completed a +2.20% bullish leg.
Target: 3375 (0.618 Fibonacci retracement level).
Most recent S&P trade:
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S&P Trading PlanPattern: Bullish Megaphone
Signal: (A) Buy as long as the 3200 Support holds, (B) Bearish if it breaks.
Target: (A) 3325 (just below the Higher Highs trend-line), (B) 3150 (just above the Higher Lows trend-line).
Most recent signal:
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S&P500 Sell SignalPattern: Ascending Triangle
Signal: Bearish as the price got rejected on the monthly Resistance and is printing a bearish MACD formation.
Target: 3090 (contact with the Higher Lows trend-line 1).
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S&P Trading PlanPattern: Channel Up on 1H.
Signal: Bearish as the price got rejected on Resistance 1. Bullish where the Higher Low trend-line crosses on the Support 1 & 2.
Target: 3,168 (Resistance 1) and if broken then the Resistance 2.
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Most recent S&P signal:
S&P500 Sell SignalPattern: Resistance/ Support trading.
Signal: Bearish as the price is testing the Resistance Zone.
Target: 3080 (just above the Symmetrical Support).
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Most recent S&P signal:
S&P Trading planPattern: Channel Up within a Bullish Megaphone.
Signal: (A) Bearish as long as the price is within Channel Up towards the 4H MA50. (B) Bullish if the Channel Up bounces near the 4H MA50. (C) Bullish if the Higher High trend-line of the Channel Up breaks upwards. (D) Bearish if the Higher Low trend-line of the Channel Up breaks downwards.
Target: (A) 3050, (B) 3140, (C) 3190, (D) 2930.
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The S&P to Silver ratioThis is an interesting one. The relationship between S&P and Silver has been quite cyclical. Twice has Silver outperformed S&P in gains, lasting around a decade each. S&P has outperformed Silver from 1980 to 2000 and then from 2011 until today.
The Golden Cross formed at the end of 2017 is an encouraging sign that S&P will continue to outperform Silver however the parabolic curve has started to trend sideways (dashed curve). Once this curve breaks, we can continue longing this as S&P will extend the dominance. Otherwise it will be time to get in on Silver for 3-4 years until the mini cycle is over.
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[SPX] Prepare for the Reckoning! June is Gonna Be Ugly.Looks like a triple top short setup. Fundamentals point to a small crash in June and that will likely trigger programmatic selloffs that crash this beast.
Institutional investors are expecting a crash by a wide margin while retail investors are FOMOing at the mouth. We won't be back here for another year at least.
Green lines are support but decent chance it'll plumb new lows for a few days at least. Fed and vaccine hype can't keep this thing afloat forever on it's own.
S&P500 Trading PlanPattern: Channel Up on 4H.
Signal: (A) Bearish as the price is near the Higher High trend-line of the pattern. (B) Bullish if the Channel Up breaks above its Higher High trend-line.
Target: (A) 2830 (just above the inner Higher Low trend-line). (B) 3100.
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S&P and GOLD during the subprime crisis. Will history repeat?This is not a trading advice, just something interesting I want to discuss with you all.
A lot of analysts claim that the COVID outbreak will put global economies into recession and that we are at the beginning of a Crisis similar to the 2007/08 Subprime Crisis. Gold has been the standard of "Store of Value" and one of the biggest winners of 2019 as well as 2020 (thus far). If we are in a "Subprime like" crisis on stocks, what are the implications for a safe-haven like Gold?
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Looking at S&P's 1W chart we can find a relation (so far) as following the late-February/ early March 2020 crash, the market broke below the MA50 but recovered and is at the moment testing it as a Resistance. Similar to what happened in April 2008.
At the same time Gold had a disappointing March as it was sold off aggressively along with the stock crash. Contrary to S&P, it found support on its 1W MA50 and has been rebounding since (making also a new marginal High). Similar to what happened in April/ May 2008 (with the exception that it almost touched its High).
During the Subprime Crisis both S&P and Gold collapsed to new lows; S&P brutally erased the gains of +10 years while Gold even though it broke below its 1W MA50, it only marginally broke its 12-month lows.
So if history repeats itself and S&P tanks during the COVID crisis, will Gold break its 1W MA50 but respect its 12-month support? It will surely put its attribute as "safe haven" to test!
Do you agree that if the 2007/08 crisis is repeated Gold will pull back even by that much on an asset-wide liquidation event, or will firmly hold its 2019/2020 gains? Any other scenarios you want to discuss? Feel free to share your work and let me know in the comments section!
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SPX500 Sell Signal setupHeres my analysis on SPX500USD before the week gets started.
enjoy a free signal.
trade at your own risk.
SELL
Symbol: SPX500USD
Entry: $2875 (Sell limit)
Best Entry: $2895 (Sell limit)
Stop Loss: $2915 (-400 to -200 pips from B.E.)
Take Profit: $2820 (+550 to +750 pips from B.E.)
Take Profit 2: $2760 (+1150 to +1350 pips from B.E.)
S&P Trading PlanPattern: Channel Up on 4H.
Signal: Bullish (A) as long as the (dashed) Higher Low trend-line holds, Bearish (B) if the (straight) Higher Low trend-line breaks. The orange Triangle is a neutral zone.
Target: (A) 2970 (just below the Resistance), (B) 2760 (just above the Support Zone).
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