Episode 9/11: US (SPX) Sectors Technical Analysis Series - 31st of July 2019
Brief Explanation of the chart(since everything is labelled on the chart): (1 minute read)
First and foremost: The XLRE Index was formed very recently(2016), so obviously due to the lack of data this analysis should be seen at most as informative. Now, let's break down the chart:
Weekly XLRE chart labelled with 2 large structural supports as blue(30$) & purple(34-35$) rectangles. Furthermore, the wave/cycle variation can be broken down to 3 most probably variations: Variation #1(Purple): If the economy continues to be in a great state. US-China deal goes through and Trump wins 2020. Most bullish Scenario. Variation #2(RED): Trump wins 2020, but the global economy slows down/Deal takes too long to be completed. Still a bullish scenario either way. Variation #3(Blue): Bearish scenario. Dems win 2020, in which case we will have a recession in the nearby future, thereafter. This is it. I do not think there's anything more to be said. I always let my charts speak the words that I am not willing to put the effort to say/write.
This is just a brief "free" and very detailed analysis. Perhaps in the future I might form a premium group, to whose members I will provide all the details of my research.
>>I do not share my ideas for the likes or the views. This channel is only dedicated to well informed research and other noteworthy and interesting market stories.>> However, if you'd like to support me and get informed in the greatest of details, every thumbs up or follow is greatly appreciated!
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Check my Previous episodes on the US Sectors:
EPISODE 8: US CONSUMER STAPLES (XLP)
EPISODE 7: US CONSUMER DISCRETIONARY( XLY )
Full Disclosure: This is just an opinion, you decide what to do with your own money. For any further references- contact me.
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Inflation Expectation analysis. Obviously there's plenty of indexes that can be used for this analysis that yield similar results. The fact is, inflation is slowing down, and lowering interest rates won't change much.
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Case-Shiller 20 city Index vs XLRE. Main point is a MACD divergence on the 20 city Index.
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Case-Shiller 10 City Index vs Inflation expectation index(RINF). Without a doubt we are in the later stages of the cycle; forming a medium sized bubble.
If you use any of the following information presented above, make sure to give me credit for the hard work. (previous comment+chart was a typo)
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Typo was fixed, all good! Hope you are enjoying the analysis.
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