Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Market Ongoing Acceleration Phase

Stock-Markets / Stock Markets 2019 Nov 06, 2019 - 04:26 PM GMT

By: Ricky_Wen

Stock-Markets

After Sunday night's grind up, Monday’s regular trading hours session was just a very tight consolidation overall range of 3083-3072.5 on the S&P 500, trapping and baiting traders as it gets ready for the next move. Price action could not gather enough strength yet to break above the 3085 key level and force a mini squeeze towards the 3100 major short-term level.

The main takeaway from this session is that the market is still showcasing the ongoing acceleration phase from last week’s breakout above 3029.5 (prior ATHs). However, the market is battling against the 3085/3100 resistance zone, and based on the current odds showcasing another temporary top setup before ramping higher. If it does not, then it opens up a rare scenario where 3193.75 target could be reached directly with a vertical squeeze to erase all doubts/odds. Know your timeframes because ultimately a temporary top/consolidation setup allows the market to backtest significant trending supports in order to reset the internals and ramp higher at a later date.


What’s next?

Monday closed at 3075.75 on the Emini S&P 500 and nothing significant has changed from Sunday night's report. Our key points:

Immediate trending supports have moved up to 3072 and 3065. All micro dips are considered buyable when above 3055 depending on your timeframes, but the risk exposure has increased greatly as price action battles against 3085/3100

Based on the current odds, the first try against the 3100 area should play out as a temporary rejection/taking a breather consolidation.

However, if that does not occur, then bulls are considered much stronger and could open up an acceleration on top of the existing acceleration phase that eclipses the current momentum in order to force a quick squeeze towards the 3193.75 macro target from months ago.

To be a legitimate bear and not a mythical creature, we need to see a daily close below 3000 to begin looking for downside follow through setups. Otherwise, odds are too low to attempt as need to take quick 1:1 profits or you will be stuck with a bracket stop as demonstrated

Short-term, if below 3030 decisively would confirm more consolidation ahead and price may be just stabilizing before another attempt to ramp up higher (see daily 20EMA playing catch up).

See chart reviews and projections on the S&P 500.

Ricky Wen is an analyst at ElliottWaveTrader.net, where he hosts the ES Trade Alerts premium subscription service.

© 2019 Copyright Ricky Wen - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in