Tuesday, January 22, 2019

#S&P500 Review $SPX $SPY

SP 500 Review
Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

S&P500's overall trend, revealed by trends of price, leverage, and time, defined and are discussed in The Matrix for subscribers.

Subscriber Comments

A failed rising wedge, the expected outcome, has three initial price targets (1,2,3). Failure of 2, the 38% Fibo retracement zone, needs to hold to favor an inverted head and shoulders pattern (InvH&S). InvH&S has been the popular call coming from the bullish camp. While this outcome is possible, so is a retest or break of the December low. Point is, we must listen to the message of the market rather than selling an opinion at this point. S&P 500's composite trend is close to triple downside alignment than upside, so the bulls must be cautious.

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Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.