At the close today we have:
- 921 NEW Bottom Spotter Alerts!
- Unanimous Major Index and Futures Options Bottom Spotter Alerts!
When it comes to Spotter Alert signals, it just doesn’t get any stronger than this from Stops and Targets!
This is exactly what I have been waiting for…
The ideal setup to continue riding the Weekly Bar Paradigm in place since 2009 has the following characteristics:
- A powerful countertrend pullback (check)
- All stop levels taken under pivots as far down as possible before penetrating support void (check)
- Major support target attained (monthly bar channel bottom) (check)
- Massive numbers of Bottom Spotters generated in Russell 3000 components (921 today–so definitely check)
- Unanimous Major Index and Futures Options Bottom Spotters (check)
- CONFIRMATION of Bottom Spotters on short-term trend change (not yet)
- Bottom Spotter hard deck holds on pullback test (pending)
- New successive daily bar higher highs and higher lows (not yet)
- Next major resistance target attained (intermediate stop/reverse line) (not yet)
So, now the caveat straight from the User Guide at: https://stopsandtargets.com/help/#collapseThirtythree …
ⓘ A new Top or Bottom Spotter signal is always generated during a powerful trending move and is itself countertrend. A Spotter Alert can be dangerous if misinterpreted because Spotters often go unconfirmed and are invalidated instead (which can be a powerful trend-continuation signal). A Spotter Alert signals a potential exhaustion of momentum and is intended to be used as an early warning signal rather than a trade entry point.
And here is more as it pertains to Confirmation:
There are two parts to generating a Confirmed Spotter signal—the initial Spotter Alert setup and then a follow-through Confirmation.
For a Bottom Spotter to be Confirmed there must be a closing price on a subsequent day that is:
- Higher than the highest price on the day that the original initial Bottom Spotter alert was generated.
Once a Spotter signal is Confirmed, the odds increase greatly for a countertrend rally to at least the closest stop/reverse line, which is shown on the Multitrend Panel and Multitrend Chart.Trend-following traders should be prepared to take at least partial profits and/or to properly position protective stops on existing trades. Countertrend traders can consult the Analysis Page for a countertrend entry signal with target and initial protective stop placement details.
The screen capture above from https://stopsandtargets.com/members/futures/es.html shows the S&P 500 Futures Options summary analysis tab at the time I am typing this (Tuesday at 10:19 PM ET)
To get a confirmation of today’s Bottom Spotter alert, price will first need to work above the short-term stop/reverse line at 2,884.74
…if that happens, the door will open for a powerful rally targeting the ‘next closer stop/reverse line’ (see Stops and Targets help excerpt in green text section above). That next higher target would be the intermediate stop/reverse line, which is currently located at 3,137.00
There are also two unfilled daily gap targets (between short-term and intermediate stop/reverse lines) above at 2964 and 3114.75 Those breakaway gaps show when and where the pros were forcing the contract lower from the overnight futures.
The highest open gap is above the stop/reverse lines at 3339.25 created on February 24th. That initial breakaway gap shows exactly when/where the pros kicked this engineered takedown off.
Of course, if price collapses under the Spotter Alert low at 2695.25 then all bets are off (literally), since the Spotter Alert will be immediately invalidated. Same invalidation holds true for any other index or individual issue. That is the hard deck. Period!
Head’s up right here everyone… this number of massive spotter signals (921!) doesn’t come along very often. If this low holds, then there could be amazing buying opportunities ahead–but it all depends on the Spotter Low holding on the initial overnight (tonight) pullback test and all subsequent pullbacks in the coming days/weeks.
For my bearish friends out there holding huge profits (…big fist bump and congrats!)… you might want to pay very close attention to the buy-to-cover suggestions at Stops and Targets if a rally gets going from here on a move above the previous day’s high. The pros don’t typically launch unless they have enough bears loaded in the pipeline to provide guaranteed buyers at higher prices. If this massive pullback was just a resetting of the secular bull, then there likely won’t be an opportunity to recover on the next dip for bears.
The ultimate target after a reset will be higher highs–so be patient and be very cautious.
If this massive spotter setup ultimately fails, then we can start thinking about a paradigm change–but so far, this is just a typical pro maneuver.
As I said in a previous post–this whole shindig really comes down to whether or not the market can reverse after all the stops have been run under major support levels (prior pivots).
Spotter Confirmation is important–so watch the short-term analysis tabs carefully. Bears are still good-to-go until/unless price crosses back above the short-term stop/reverse line. If/when that short-term trend reverses then we could see an impressive launch if the pros decide to reverse and drive this higher.
Just something to think about… we KNOW this was an engineered takedown because the pros created an opening gap on the weekend and then drove the futures down every succeeding night while the Fake News screams doom and gloom.
The pros could have easily stopped this meltdown (they THEY intentionally started) at any time by simply buying the overnight futures. They clearly didn’t want to.
In my opinion, this is all political maneuvering by the global socialists. In order to have any chance at all to defeat President Trump in November they have to somehow undermine his amazing economic success. Nothing else they have tried thus far has worked, and I doubt this scheme will either–but these are desperate times for the globalists, so beware if today’s Spotter lows don’t hold.
Cliff’s Note summary…
- Below Tuesday’s lows –> bulls recent woes continue and bears rejoice.
- Above Tuesday’s highs –> bulls and bears start buying together.
Watch the short-term timeframe tabs!