Always consider hidden risks
SP500 Index: Dead Cat Bounce or... ?
August 26 ( From Tradeview )
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We have been in one of the most Bullish Stock Market in history
since 2009.The Mighty SP500 Index from a low in March 2009
of 666.79 to the closing peak on May 31 2015 at 2130.82 rose by
of 3.27 spurred by low interest rates and strong buybacks
With the Emerging Markets Financial Turmoil, the SP500 Index
broke its Rising Wedge Pattern on August 20 then at 2060.5.
( See chart Below - SP500 Daily - Red Trendline - Ellipse )
Since then we had two overnight gaps for the SP500 Index that
have been done:
- the first one between August 20 ( low of 2035.73 )
and the 21 ( high of 2025.09 )
- the second one between August 21 ( low of 1970.89 )
and the 22 ( high of 1965.15 )
Those gaps will become resistance and make the difference IF broken or not between a dead cat bounce or a real Bull Impulse... So first test of the market wiill e the 1970 zone; a daily close higher will bring the next one to 2032 zone. A failed to do so will mean dead cat bounce is over... ( See chart Below - SP500 Daily - Ellipses )
But the Real Interesting Technical Factor is that those gaps are within the Fibonacci retracement ( from the top on July 20 to the bottom on August 24) of 0.382 at 2032.5 and the 0.618 retracement at 1969.4.
( See chart Below - SP500 Daily - Fibonacci - Ellipses )
"Chance favors the prepared mind."
SP500 Index: Dead Cat Bounce or... ? $SPY #Trading #Investing #SP500 #stocks
SP500 Index Daily ( Candles )
SP500 20 day moving average ( Yellow Line )
SP500 50 day moving average ( Red Line )