Hi there Greetings from Wave Trader and very very HAPPY NEW YEAR and have nice and and profitable 2019.
We are having more than 20 percent drop on SPX500 which is creating very nice longer term buy setup. There is lot of fear in the market but the price action we have seen recently that is telling use that soon this fear will be over and we will see bullish trend resumption.
How you can trade on this chart.
1. There is a lower time frame correction which is trying to break up and trying to push up for bullish trend resumption Watch for that to get down for one more drop and retest of the bottom and then look for buy there at bottom. Or let the price push up and correct then go for long on next correction. I will update the lower time frame if you are not getting it in words.
Or
2. If not comfortable to buy on current correction then let the price test the bottom again and then look for buy.
Note: The lower the SPX500 goes the bigger the Opportunity will be for longer term holding.
Please support the setup with your likes, comments and by following on Trading View thanks
Yes, we had a 20% drop. What will happen next, IMHO, is the price will go up just by +4% to 2640 (~February 2019) but then it will retrace -13% again down to ~2290 and break your yellow channel trendline. Yes, your yellow trendline will be broken. Then after a small rise back to ~2500 it will go all the way down to ~2170. There I would buy for long term holding. Take care, everyone.
Wave-Trader
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@ReallyMe, if you have chart then post that please.
ReallyMe
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@Wave-Trader, yes, my last idea on S&P 500 has a chart to it:
@Wave-Trader, I deliberately did not draw all the additional levels and tools that I used in the creation
wargolynch
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Logarithmic chart trendline is broken, and log chart is more relevant for long term analysis in my opinion.
My count is not the good one, I think you're right with the extended 3rd wave. But there is still a looot of potential for more correction ! Look at these divergences, with this volume falling to the abyss.
wargolynch
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@Maped, We can also see the RSI divergence on 6month chart
SPX ticker made by tradingview is the only one capable of showing real volumes. The ticker is not based on futures but real stocks exchange. Also, it shows SP500 since 1871
Ajion
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This is possible, just like back from 1987. However, with Brexit still in play and peak profits, highest corporate debt ever. I am not so sure about the long picture. Death cross happened. But hey maybe Trump can do a miracle with china and china goes panda, and oil continues to climb and we have some sort of inflationary growth, plus dollar decline in price.
I hope you right, but let see. Not saying you are wrong, just saying a lot of good things have to happen for bull to resume, but a lot less things have to happen for bear to continue the bear.
You are right about the trend, though, it did held.
Cheers mate :) 2019 is going peculiar
Wave-Trader
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@Ajion, Fundamentals were almost same last time as well.