Market Update

One person sent a comment to me after my last post who was a little confused by the flipped charts I used.

To help clear that up I have posted my current monthly bar analysis chart (each candlestick bar on the chart below equals 1 month).

Right below the first chart I have posted the flipped (mirrored) image–but this time without reversing the colors and erasing the text so you can all better see what I did.

Hope this side-by-side display helps to clarify… If anyone else has questions, as always, send me a comment above.

 

click image to enlarge

Currently monthly bars in the chart above…

 

click image to enlarge

…the same chart has been flipped to show the opposite perspective.

 

 

The whole idea of this exercise is to flip our brains’ perspective on the market to help better grasp a shocking change.  We have had almost 10 years of a raging bull market and now we see the first major deviation from that long running paradigm.  So, my idea is to display the current market as a bull would see it–so as to illustrate the same market dynamics from a bearish perspective.

This is a very young (but so far, vicious) bear market.  It is the exact mirrored equivalent of the first touch of the previous bearish trendline, from below, way back in 2012.  The breakout that killed the old secular bear and launched the new bull is highlighted by a yellow shaded circle on the charts above.  The equivalent trendline for the secular bull that has been underway since 2009 now lies just below.

Since price recently sharply broke out to the downside of the very long-term range envelope (at 2546.75) the rising dark green support trendline is the next major target below.

Will there be a powerful short-covering bounce that erupts near there?  Possibly.  We’ll see soon enough.  That’s about as deep as the pros can go without completely destroying bullish hopes for an eventual recovery back toward new highs.  Underneath that trendline all hell could break loose to the downside as panic selling intensifies.

The rising very-long term trendline is currently at the 2344.50 area.  Let’s watch carefully and see what happens there.

The big unanswered question here is: are the global socialists willing to burn it all down in a desperate attempt to stop President Trump from dismantling their cushy oligopoly?

Head’s up at the trendline!

…my .02

 

Merry Christmas Everyone!