Despite the mid-day’s attempt to continue the rally from Thursday and Friday, bulls failed to sustain the momentum today. The tape on ES mini futures had a lot of bearish bets placed throughout the day. The market bumped into 2960 resistance and retraced back all of its intraday gains into the session close. Here’s what I see developing next.
The market started to sell off early in the week but staged an impressive bullish reversal on Thursday and Friday. The next week – especially the action on Thursday and Friday – will hold the keys to what will happen next.
Today’s big theme is a bear trap followed by an aggressive squeeze. The question is – does this reversal mean the selling is over or should we still be cautious? Let’s dive in.
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.
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.
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).
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.