Friday, August 12, 2022

#SP500 Review $SPX $SPY

SP 500 Review
Investors trying to interpret the composite trend tend to be 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. Confusion contributes to their role as bag holders of trend transitions.

S&P 500's trend, revealed by trends of price, leverage, and time, are defined and discussed in The Matrix for subscribers.

Hey Eric,

I was wondering if the Invisible Hand is showing its hand for the flows into dollar-based assets in early 2023, after another sell off in Sept?

I follow the three time frames of the matrix and currently the domestic capital (S&P and R2K) seems to have stronger energy build than the DOW, which is favored by foreigners. The NDX (retail) has negative DI's, while AAPL is getting a bid. A bit confusing.

I don't act on theories, bit I like to find ways to test them. I also follow Armstrong's ECM and Socrates, which is eerily similar to your analysis. Armstrong's computer generated analysis says:

"Our timing models warn that a turning point is due come September in S&P 500 Cash Index so we should remain focused. The last cyclical event was a low established back during June. Normally, this implies that the next turning point should be a reaction high. However, the market has been neutral for right now, so caution is advisable and look more closely at the short-term trading levels for a hint of the next directional move into that target time frame. Last month produced a neutral inside trading range from the previous month but closed on the positive side. At this time, we have exceeded last month's high and we are trading above it on a closing basis. We must close this month above 414015 to suggest any further upside potential. We now need to close above 459345 on a monthly basis to imply a technical reversal of trend to the upside for now."

If Sept is the reactionary high, followed by a decline into early 2023, what are you monitoring?

Thanks S

Subscriber Comments

The Series 2 Nasdaq 100 Report 04/19/21, a series of videos, extends the discussion.

Any computer that follows the invisible hand inevitable generates similar interpretations. The Matrix allow us rather than computer to generate the conclusions.  This review discusses the S&P 500's setup in terms of the Evolution of the Trade, cycles, and energy, reversals, and more for 2022-2023.

Use your Subscription Level Access Code to access the full review.

S&P 500 Review Full Review

Updated 08/12/22,

The composite Equity DI updated on 08/12/22. It keeps climbing. Watch out bears, price has broken out from the coil, and DI is increasing. Rewatch the above review.

Composite Equity DI

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The Matrix provides market-driven trend, cycles, and intermarket analysis.