S&P 500 Doom – 4 Times In 12 Years Bearish Pattern

SPY did exactly what we thought it would and this was to have an oversold spring up and to test the Head and Shoulders Top neckline at around $104.15

The reason behind why that mark is meaningful is that in a downtrend previous support level becomes resistance. The resistance area extends from $104 to $105 and is a crucial zone which bulls have to break over to improve this stock chart from a technical point of view.

Do I think it will happen? No.

We had a formal Burial Cross on today’s chart. If you don’t understand what a Burial Cross is, it is when the 50 day moving average breaks below the 200 day moving average. We have had only 4 Burial Crosses ever since 1998. The previous Burial Cross we experienced was in December of 2007. After this Burial Cross took place, SPY dropped from around 150 all the way down to 70 or a drop of roughly 50%!

In this video I evaluate the SPDR S&P 500 ETF (SPY) as being in a powerful downtrend and I recommend you short this stock market if you are not by now. At the very least you should close out your long positions and move to cash. Most investors believe there are only two choices to trading, either being long or being short. There is a third decision that makes money and that is being in cash. As soon as you integrate going to cash in your trading decisions, you add the dimension of being aware of when to trade. Being aware of when to trade is just as important as understanding what side of the trade to be on. Provided you are a more hard-hitting investor like myself, you need to think about shorting this stock market.

Don’t Let Bears Steal Your Money Watch the S&P 500

Free Trading Videos sees the volume spike on SPY as a signal we might experience a bounce next week on the S&P 500.

These volume spikes or blowouts are surrender moves where bulls have experienced rising pain as the stock market has plummeted. Ultimately the hurt gets more than they can tolerate and they throw in the towel and sell making a volume surge on the downside. Once the sellers are out, and the shorts cover, the stock market is then free to go higher on low volume.

We had such spikes at the starting of May, June, and now in July.

When you look at the S&P 500 on the daily stock chart, you see a downtrend channel and that we are at the lower trend channel wall. However before we can put money on on a swing up, according to FTV, we need a close above 1036.

I disagree with FTV and the 1036 level. At 1040 to 1043 we have the major previous support zone. We know that support often turns into resistance on these kind of downward moves so it seems silly to enter at 1036 when the bigger 1040 to 1043 resistance zone is so close by. I deem that 1036 is a perilous, roll the dice entry. I choose to make this market prove the upswing is underway by a break above 1043.

If you study the weekly chart, and bear in mind, the weekly chart trumps the daily chart, we had a break of the neckline last week on a bearish Head and Shoulders top. This is a treacherous market and not one you should go long the S&P 500 in just since you might have a trend channel bounce up to 1036 on the daily chart.

Nonetheless, I think this is a video that you need to see. You can never have enough stock market analysts opinions.

The Stock Chart Patterns That Won’t Stop Screwing Us

My friend and stock forecaster with Market Club, Adam, will share with you his reading of the S&P 500 chart.

You previously saw my analysis of the S&P 500 chart and prediction for July hence why am I showing you one more technical analysis video on the S&P 500 chart?

I am of the opinion that you can not check out enough technical analysis vids. Everyone has their particular technique and style when reading charts therefore aim to watch as many technical analysis vids as possible. One analyst may focus on something that another stock analyst only briefly talks about.

Take notes of the common threads or central points you see and hear talked about in various stock analysis vids. You will notice that when 2 or 3 distinct analysts talk about the similar thing in a chart, it is a good idea for you to keep your eye on that distinct pattern or price level.

Provided you are a stock analyst yourself, and I wish you are as my objective is to teach you as much as I can on how to become one, then studying technical analysis videos from several market analysts will assist you in your own trading and in making your own content for your blog, video, or just to speak about with folks.

In this video, Adam takes a quick look at the S&P 500. He draws three moving average lines: the 50, 100, and 200. Adam did this video on June 30th and he talks about the Burial Cross that all technical analysts are keeping their eyes on: the 50 day moving average breaking below the 200 day moving average. Because this video was created on June 30th, we have had a Burial Cross since which means now is a terrific moment to short this market.

The Trade Triangle score on the S&P 500 is -90 which means a powerful downtrend.

If we do a Fibonacci Retracement of the rally that began in March of 2009, then a 38.2% retracement is at 1011, a 50% retracement is at 947, and a 61.8% retracement is at 883. Those are our 3 support levels on the way downward. Adam’s sentiment is that we are headed to the 50% to 61.8% retracement area between 947 and 883. If Adam is correct, we are in place to make a lot of money on the short sell side. Keep in mind also that 70% of all Fibonacci Retracements go down between a 50% and 61.8% retracement area.