🚨SPX: Bounce on Daily 50 EMA? 📈 Or Drop to 4Hr 200 EMA? 📉 🚨
Updated
Quick analysis of SPX short term:
Clear down breakout from 4Hr 50 EMA , Boll. Bands and Rising Wedge
Bulkowski in the Encyclopedia of Chart Patterns lists a Bull market Down Breakout as one of the worst performing chart patterns.
- 51% chance of no more tan 5% drop (this would see a test of the current Daily 50 EMA
This in context with the current 4Hr, Daily, Weekly and Monthly MACD & RSI - it looks like we could see a small dip here to max the daily 50 EMA , before reversal and continuation of the trend before a bigger drop later in the year.
If the daily 50 EMA is broke, we would likely see a drop and test of the 4Hr 200 EMA , but as highlighted by Bulkowski, there is a low probability of a drop greater than 5% for a down breakout of a rising wedge in a bull market.
Looking forward to see how the last months of this year play out!
What are your thoughts?
yemala
Clear down breakout from 4Hr 50 EMA , Boll. Bands and Rising Wedge
Bulkowski in the Encyclopedia of Chart Patterns lists a Bull market Down Breakout as one of the worst performing chart patterns.
- 51% chance of no more tan 5% drop (this would see a test of the current Daily 50 EMA
This in context with the current 4Hr, Daily, Weekly and Monthly MACD & RSI - it looks like we could see a small dip here to max the daily 50 EMA , before reversal and continuation of the trend before a bigger drop later in the year.
If the daily 50 EMA is broke, we would likely see a drop and test of the 4Hr 200 EMA , but as highlighted by Bulkowski, there is a low probability of a drop greater than 5% for a down breakout of a rising wedge in a bull market.
Looking forward to see how the last months of this year play out!
What are your thoughts?
yemala
Note
*I am talking about a "bull market down breakout of a Rising Wedge chart pattern" - missed this in the 3rd sentence above :)As noted - bulkowski identifies these as having 51% probability of no more than 5% drop and one of the worst performing chart patterns...
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