Check out this chart for a possible reversal of the rally of the last few days on the S&P 500:
Note that Thursday's action brought the index up to the same level as it was on the 29th and 30th of May. If Friday's action is down, we could be looking at a double top.
Note the RSI 2 is up well over 80 circled in orange.
The MACD has reached zero (circled in blue) and may regard this point as resistance.
Note the dark red highlighted shooting star candlestick of today (if Friday's action is down this will be confirmed) and the morning star candlestick of June 4th (purple arrow).
Any other interpretations of the recent days actions out there?
Note that Thursday's action brought the index up to the same level as it was on the 29th and 30th of May. If Friday's action is down, we could be looking at a double top.
Note the RSI 2 is up well over 80 circled in orange.
The MACD has reached zero (circled in blue) and may regard this point as resistance.
Note the dark red highlighted shooting star candlestick of today (if Friday's action is down this will be confirmed) and the morning star candlestick of June 4th (purple arrow).
Any other interpretations of the recent days actions out there?
PW,
ReplyDeleteIn the time when TA usually worked, before constant intervention from central banks - c.2008, your analysis would form the basis of a robust strategy to short the market using appropriate risk management and position sizing techniques.
Nowadays, the markets are driven by news and liquidity, especially news about future injections of hot liquidity, courtesy of said said central bankers.
If it's axiomatic that in a bear market rally everyone, bulls and bears alike, lose their money, then this one being the mother and father of all bear market rallies, means best stay the heck away, lest we get "totally murdered", let alone merely go broke trading it and remain in cash.
Regards,
John
Point well taken John.
ReplyDeleteMy personal experience shows it is quite easy to get beat up in the markets these days. Just when you think you have things figured out from a TA point of view, BAM, something out of the blue hits you square between the eyes. I am considering moving to cash myself to keeps the gains I have left.
Evening PW sitting in cash, Gold and Silver ( In hand ) and Playing MREITS, not only for the div, but option calls as well. I'll buy the drips.
ReplyDeleteAGNC
MTGE
Both high potential summer gainers...if I had too pick a favorite that would be AGNC.
Be well
Bill
Good to hear from you Bill.
ReplyDeleteToday's action did not play out quite as I anticipated, but that's the market.
Holding many items you also have. Playing a few mid cap gold stocks and preparing for increasing volatility as Europe's problems are far from over in my view.