US Stock Market Correction Over?
Hello Steemians! I wrote about the recent US stock market correction a couple of weeks ago in this post. We are 10 trading days from that post, and the SPX daily chart looks like below as the close of last Friday:
Click! This is a zoomable image. I have been learning Markdown :)
Okay, the big hammer day of Feb 09, 2018, currently marked the bottom, and the market rallied 5 days in a row to break above the top of the Dead Cat Bounce (DCB). So people who have shorted the market playing the DCB, are now mostly taken out by that move. Immediately after taking those stops, big players faded the rally from Feb 19-21, but this is just a fade. So eventually SPX found a much higher bottom on Feb 22 @ 2682 and stageed a sharp two day move above the DCB again. So where do this leave us?
Since we have now placed a higher low @2682, and trading above DCB reaction high, and trading higher than 10 and 50 EMA; it is hard to argue against the new uptrend. "But the Dip" players are back, so I say we likely rally back to the all time high. We have room in the Stochastics and quite a lot of room in the price to the upside.
Our only risk is the political headline. If something happen in the Whitehouse, all bets are off. But frankly that is not really bothering the market in any meaningful way.
So I say, Steem On!
Disclaimer: This is NOT professional advice, this is all just my own opinion and experience. I am NOT a Certified Financial Adviser. Consult professionals for any financial, accounting or legal related questions you have.
The powers that be wont let it drop for to long.. the manipulation is ridiculous! What is keep this market alive? Definitely not the the people..
Thank you for the visit and comment. I have been doing this for a long time and it is always the same. Couple of points: There is no other game in town, that is keeping the market alive. People and businesses have money; where will they put it?
Next is the manipulation. There are scales of manipulation, but most of it happens in a intraday scale, where more than 75% of the volume is HFT. The interesting thing is HFT is not real net volume in a meaningful way, so over multiday move, its effects are insignificant in the beginning and then additive, as they join in the momentum. Most of the "algos" today follow continuation pattern, that is why any move in any scale in any direction seems longer than usual.
You got a 68.18% upvote from @minnowvotes courtesy of @azircon!
I like how you read charts, good to see other people talking about other markets beside Crypto. Check out my post from today, I'm sure you will appreciate the analysis.
https://steemit.com/stock/@rollandthomas/wall-street-secrets-revealed-2-did-you-buy-the-milk-this-week-part-2
We also have Congressional testimony coming this week from Jerome Powell. It has the potential to roil the markets, but it isn't likely that the cautious new Fed governor is going to deviate from the rhetoric that came from the Janet Yellen led Fed - at least not this early. Plus the semi-annual Fed monetary policy report out this past week pretty much said tha tthe Fed isn't planning on more than 3 rate hikes this year.
I am just a technician, I trade bars. News is hard to predict and even harder to trade efficiently as an individual, there's algos for that. I am just happy trading my green bars and red bars. Politicians, Fed officials come and go; market will always be there. Well until a meteor impact that is:) but there is no protection against that :)