Индекс S&P 500Короткая
Can you stomach a 15% drop ?
Обновлено
If you study this chart closely, you would notice that the first buying opportunity lies at 2416 price level where the bearish trend line was broken out on 25 Mar 2020.
It went up twice but failed but the next day, 26 Mar 2020 1900 hours, it shoot up with a nice bullish engulfing candle. You can see the 2nd buying opportunity was at 2466.80 level on 28 Mar 2020. Again, it went up and failed and from 2 Apr 2020 to 4 Apr 2020, it stays sideway before it rockets off to a high of 2888.50.
Currently, it has broken down from the bullish trend line and is retracing. The next few candles are crucial as it determines if it will falls to the levels I drawn on the chart (blue horizontal) or it tricks us with a false signal and went back up again.
Let's prepare for that event if it happens. 2888.50 was the resistance and if it does shoot up again, it will revisit this level , making it a triple top pattern. And the latter is usually a bearish sign before the trend reverse.
This Bat pattern or M formation as I prefer is very commonly seen in charts and as TA traders, we need to be familiar with it and know how it operates.
So for sellers, this possible drop of 10-15% may be what you are after. For buyers, if my analysis is right and this pattern plays out as it is AND not goes below D (must not go below X) or X , then get ready your bullets to fire.
We are at the 3rd week into April now and we had witnessed one of the worst event last night with the Oil contracts going into the negative. I am sure some companies will go bust and declare bankrupt. And if that hypothesis comes true, we can see the media covering this in the headlines very soon. Then, fear , a powerful indicator will once more force millions of retail traders to dump their shares as soon as possible.
Meanwhile, who's smiling behind the curtain , like a shark circling around its prey , ready to pounce on it? It is the institutional buyers, market makers who operates like the invisible hands come in and scoop it cheap.
And in the midst of this gloom and doom climate, they will push the price high up, leaving the retail traders far , far behind, lamenting months later why they missed the boat.
If I am lucky in my prediction, then this fall of 10-15% will ride into the month of May where the "Sell in May" season comes in.
But with lockdown in many cities, where can these hedge fund managers and equity traders go to ? I don't know , perhaps lock themselves up in their luxury mansions and watch Netflix and chill out ?
Please do your own research and manage your risk and capital carefully. If in doubt, talk to your financial adviser.
Trade safely , stay safe and pray for all during this Covid -19 lockdown.
It went up twice but failed but the next day, 26 Mar 2020 1900 hours, it shoot up with a nice bullish engulfing candle. You can see the 2nd buying opportunity was at 2466.80 level on 28 Mar 2020. Again, it went up and failed and from 2 Apr 2020 to 4 Apr 2020, it stays sideway before it rockets off to a high of 2888.50.
Currently, it has broken down from the bullish trend line and is retracing. The next few candles are crucial as it determines if it will falls to the levels I drawn on the chart (blue horizontal) or it tricks us with a false signal and went back up again.
Let's prepare for that event if it happens. 2888.50 was the resistance and if it does shoot up again, it will revisit this level , making it a triple top pattern. And the latter is usually a bearish sign before the trend reverse.
This Bat pattern or M formation as I prefer is very commonly seen in charts and as TA traders, we need to be familiar with it and know how it operates.
So for sellers, this possible drop of 10-15% may be what you are after. For buyers, if my analysis is right and this pattern plays out as it is AND not goes below D (must not go below X) or X , then get ready your bullets to fire.
We are at the 3rd week into April now and we had witnessed one of the worst event last night with the Oil contracts going into the negative. I am sure some companies will go bust and declare bankrupt. And if that hypothesis comes true, we can see the media covering this in the headlines very soon. Then, fear , a powerful indicator will once more force millions of retail traders to dump their shares as soon as possible.
Meanwhile, who's smiling behind the curtain , like a shark circling around its prey , ready to pounce on it? It is the institutional buyers, market makers who operates like the invisible hands come in and scoop it cheap.
And in the midst of this gloom and doom climate, they will push the price high up, leaving the retail traders far , far behind, lamenting months later why they missed the boat.
If I am lucky in my prediction, then this fall of 10-15% will ride into the month of May where the "Sell in May" season comes in.
But with lockdown in many cities, where can these hedge fund managers and equity traders go to ? I don't know , perhaps lock themselves up in their luxury mansions and watch Netflix and chill out ?
Please do your own research and manage your risk and capital carefully. If in doubt, talk to your financial adviser.
Trade safely , stay safe and pray for all during this Covid -19 lockdown.
Заметка
Jobless data coming up in 2 hours time. Let's see if it will plunge the index or like the previous two rounds help to shore up the market higher. What's your take ?
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