Jump to content

The US markets may have just signalled the top.


Guest GaryB

Recommended Posts

Guest GaryB

A wild swing in the US indices overnight may be the tipping point for the bulls.

From the outstanding ADP employment numbers early in the session lifting the DOW from yesterdays close a massive 282 points to the intraday high and followed by commentary from the Fed wanting to start unwinding the $4.5 trillion balance sheet, within hours the indice had finished 41 points in the red. The S&P500 followed the same pattern.

This type of violent swing can be the longer term defining point for the bulls, as all long positions taken during the session get closed out or sit as unrealised losses on the trading journal. The coming price action will determine if those unrealised positions have to be closed out.
On the overnight price action some very powerful charting signals can be catalogued into the traders set up journal for future reference.

 

Taking a look at the daily and using a confirmation only observation, the large range on the first of March posted a high at 21,171 points the following price action has not breached this level. The longer this persists the more probability of price weakness. I have marked the 50% midpoint of the large range, it is a charting / price phenomena that these large range periods can offer resistance or support at the midpoint. This is a practically strong observation in the weekly chart. (There was an excellent book written on the subject called “The Japanese chart of charts”)

Wall street daily  (-).png

 

 

 

In the intraday session of the market using a 1 hour chart a very nice reversal signal setup has marked the high for now.

The exhaustion high followed by the larger range hourly bar suggest the buyers have left. The inside range and second short range also confirm the absence of buyers, and finally the breakpoint as long positions are closed and the short sellers see opportunity.

 

Wall Street 1 hour (-).png

 

So where too? Referencing back to the daily chart the last spike low set on the 3rd of April has a low of 20,570.

The importance of this level is based around the fact that during the session the market found buyers at the low a price breakdown below this level would simply put further pressure on the long positions, intraday momentum should be monitored for both support and outright rejection at this level.

** Trading always incorporates stops, this setup is no different.**

 

 

Link to comment
  • 1 month later...

Hi 

 

I see you have posted images of cash charts of the DJI provided by IT Finance/ProRealTime. Would you kindly let me know if what I am seeing is the premium version provided by ProRealTime when one opens an account with them linked to an IG CFD account?

 

Thanks

Link to comment
  • 1 month later...

Hi   The Dow and US crude could be worth keeping an eye on. Yesterday's fall from the high for Dow is a nice pull back and linked to the continued downturn in Oil which had a strong push down yesterday to test long term support (since Oct 2016). This was done on only moderate volume and so looks to have been caused more by vacuum than strong bearish pressure. Are the oil bulls just laying in wait?

 

Both could be due a strong bounce up or strong break lower. The US open should be interesting.

 

http://www.barrons.com/articles/look-out-below-dow-drops-60-points-as-oil-tumbles-bonds-gain-1497992484

 

Wall Street_20170621_10.34.pngOil - US Crude_20170621_10.33.png

 

 

 

 

Link to comment
  • 7 months later...

Archived

This topic is now archived and is closed to further replies.

  • image.png

  • Posts

    • Bitcoin's rally is fueling gains across the market. Here are 3 altcoins with breakout potential:   Fetch.ai (FET): Bullish triangle pattern hints at a surge to $3.48 or even $5 by month's end. Floki (FLOKI): Recent breakout suggests a climb to $0.00045, capitalizing on meme coin momentum. **** (****): Inverted head & shoulders pattern forming, potentially driving price to $0.000071.   Could these be the next big crypto moonshots, or are they headed for a fall? Read the full article here for a more detailed analysis of each altcoin, including charts and technical indicators: https://coinpedia.org/price-analysis/memecoins-for-3x-profits-by-the-end-of-may/
    • Bitcoin (BTC) is breaking out, surging nearly 10% in a week and reclaiming the $67,000 level. This bullish trend has ignited questions about whether a new all-time high, or even the psychological barrier of $100,000, is within reach. Key Points:   Post-Halving Rally Echo: The current surge resembles past post-halving rallies, where Bitcoin's price historically jumps after its block reward gets reduced. This scarcity could be driving the current upswing.   Technical Indicators Support Bullish Outlook: Daily charts hint at a potential breakout from a resistance trendline, signifying the end of a corrective phase. Additionally, bullish signals emerge from technical indicators like VI lines and ADX. Fibonacci Levels Suggest Six-Figure Target: Based on Fibonacci levels, a significant price increase is on the table. If the momentum holds, a moonshot to $100,000 this year seems achievable. However, some analysts predict a more conservative target of $77,842 by Q2 2024.   AI Predicts Bullish Q2, But How Bullish?:  The analysis incorporates predictions from ChatGPT. While many expected a bullish forecast, ChatGPT surprised with a potential rally to a staggering $87,613 by the end of June! Is Bitcoin on the cusp of a historic bull run, or is this just a temporary spike?   Read the full article here for a deeper dive into the technical analysis, expert opinions, and a closer look at the AI's prediction:  https://coinpedia.org/price-analysis/chatgpt-predicts-how-high-can-bitcoin-price-rally-in-q2-2024/    
    • Pepe, the meme coin, has dropped 12% after reaching record highs earlier this week. This has investors wondering if it's a good time to buy. Why Did Pepe Surge? The Pepe price jump was linked to the return of an online personality known as "Roaring Kitty," who was a key figure in the meme stock craze of 2021. This triggered excitement around Pepe, similar to what happened with meme stocks back then. Is Now the Time to Buy Pepe? Experts say it might be a bit early. While the price has dropped, it's still significantly higher than usual. Instead of buying now, investors might want to wait for a retest of a specific price point (around $0.00000920) which could offer better buying opportunities. Why Are Some Investors Still Bullish on Pepe? Despite the recent drop, many believe Pepe has room to grow. Here's why: Popularity: Pepe is gaining popularity, which could drive the price up. Market Cap: Compared to other meme coins like Dogecoin and Shiba Inu, Pepe's market cap is still relatively low. This means there's potential for significant growth.  
×
×
  • Create New...
us