The markets sold off in a spectacular fashion today. The S&P500 broke below its 50d MA. Let’s review the market model and see what might be in store for indexes going forward.
Market performed a classic bull trap today. After disappointing bears twice last week, bulls got smacked on the first day of a new quarter. What is also important is that the market didn’t rally into the close. I also recorded today’s tape on ES mini futures: a lot of bearish bets made.
Ever wondered why there are so many orders on SPY for the same share quantity at the same exact price? Or how orders are coming in for $279 when SPY never traded at $279 today?
Today marks the end of the month as well as the end of the 3rd quarter of 2019. There are some very interesting developments taking place. I will review a lot of charts in today’s important update of the market model. Let’s dive in.
NAHILO is one of the indicators in my market model. This post will explain why I included this indicator in my model. This indicator is powerful and can provide amazing signals: buy, sell, divergences and break outs.
I was looking for a confirmation of the sell signal and I almost got it today: the market dipped below 2960 and stayed there for the whole 2 hours… lol. Bulls took it back above 2960 with ease. My conclusion is that the 2960 level held today and we are yet to get our sell signal confirmation. I learned long time ago that the price action and tape have to confirm whatever scenario I expect (otherwise, I don’t get aggressive).
A moving average helps a chart reader see the overall price trend in a stock. Traders widely use the 200d MAs as indicators of long-term trend. For example, if the stock is above / below its 200d MA, it is believed that the stock is in the long-term uptrend / downtrend. We can apply the same logic for a group of stocks via the SPXA200r indicator.
After losing 50% of my capital in late 2009 – early 2010, I decided it was time to develop my own system of navigating S&P500. It took me several months of study and research to come up with the best set of indicators for my market model. This post will explain the logic behind the buy and sell signals that my model generates.
If you follow fintwit bears, they all point out to the broadening formation on S&P500 and imminent bearish consequences for the stock market prices. I decided to review the daily chart of S&P500 for the last 50 years to see if there were any broadening formations in the past and what was the resolution of those formations.
If you are a swing or position trader, you should definitely consider adding the S&P500 Advance-Decline Percent index in your trader’s toolbox. This great indicator can provide both bullish and bearish signals and keep you on the right side of the trade.