S+P 500 looks to open trading in 2019, with an "Island Top" Reversal Break of the Rising Wedge Pattern, as shown here on the 15 minute chart.
A 15 point up move to 2506 in the last 5 minutes of trading on Dec.31,2018 solidified this pattern to 2509 SPX Resistance.
This break below Trend Line Support at 2487 on the OPEN on 1/2/19 will establish a "Island " Price Area on the 15 minute chart ( as shown) above 2500, as a LEFT BEHIND in 2018.
The degree of difficulty in interpreting this bearish technical event on the last trading day close of 2018, and subsequent New Year's holiday, will immediately put investors and traders back on the real defensive to start the new year.
Technical analysis is often most difficult to interpret when perceived bullish breakout moves fail,and fail spectacularly, as this one has the makings of doing.
One must immediately change gears and recognize the bearishness of the technical event at hand, to take full advantage of the downside potential, of this surprisingly BEARISH Island Reversal Top.
SPX Last 2506.85 12/31/18
THE_UNWIND 1/2/19 900 AM NEW YORK
Comment
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Massive Whipsaw. Trader's Worst Enemy ......on either side of the trade today
Bullish Pattern from 12/31/18 Breaks Down on the Open on 1/2/19 yet recaptures support and then moves to a potential breakout to the upside, in the afternoon.
Everything is the mirror opposite of what it seems today What appears to be right... is wrong, and visa versa.
Best Position today is to have been afar, away from this market, and just been long I guess. There are still some people who do that type of thing. Today they have been rewarded, for their beliefs, but things can change before the close..
I am using 2521.25 as a SHORT STOP, for the rest of the day.
The market is clearly rigged if one follows key indices ... huge liquidity flowing in and sloshing around, most likely courtesy of the Plunge Protection Team in order to prop Things up... this can only distort the market and make it untradable...
PipMiesterStronger
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@mstable, yeah! IMO. Institutions trying to create liquidity to phase out before things drop harder. Keeping prices higher with strange forceful buying to transition out of Longs and go short.
CodedFlow
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CodedFlow
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2474 was broken ... 2520 was tested twice. how much steam do you think the bulls still have ? I count on ZERO. they are dripping on EURJPY, Copper, OIL and NDAQ is in limbo. We are done ... last SPX 5M test and head shoulder is formed. You can always try 3 times... then somebody fires you ...
SviCapital
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@LoLBeach, can’t really say. I watch the price action and look for failures of either side to gauge the short term winning team
CodedFlow
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@SviCapital, 2474 was broken - the head actually was cut. but then somehow the buddy started to kick the cupboards around. this is dramatic illogical and not very funny. on top the RSI on 4h holds nicely. scary indeed, not lying...
The_Unwind
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@LoLBeach,
Extreme dynamics inside a 50 point range 2520-2470.
Off the charts .Yuck.