Back in Aug-September last year we broke down from a rising wedge that should have taken us down to around 3850-3900 on the S&P. But instead we just dipped a bit and made a new high in November. But these chart patterns can take time to play out. Later on we retested the bottom of that wedge and were rejected, that's when the correction really started.
Now we have finally met that target. I guess it's time to start DCA'ing into the market again.
Now we have finally met that target. I guess it's time to start DCA'ing into the market again.
הערה:
I believe there will be a retest of the double bottom neckline and horizontal support at 4050 which coincides with the middle of the yellow channel on this chart. A lot of confluence in this zone.
Then I think it will reach 4250-4300 before the end of the week. The question is what happens once we get there? ^^
Then I think it will reach 4250-4300 before the end of the week. The question is what happens once we get there? ^^
הערה:
It looks like the market is trying to backtest this -15% from the rising wedge breakdown (about 3868) level as support. This level could be a very important point of control if it does hold as support. In December it was resistance, and now it has flipped into support.
הערה:
Contraction always leads to expansion --> Rising wedge broke into a broadening falling wedge which totally makes sense. The question is how long is this expansion/consolidation of the range going to last?
Contraction always leads to expansion --> Rising wedge broke into a broadening falling wedge which totally makes sense. The question is how long is this expansion/consolidation of the range going to last?
הערה:
Interesting to note that the volume has been increasing lately
China will have good news soon enough and the market will rally hard now that puts are at all time highs.