Hello Traders and Analysts,
A Note before reading - this is a forecast quick analysis - based upon our trading strategy. This is tagged long, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.
Master Key for zones
Blue = Monthly
Purple = weekly
Scarlet - Four day
Orange = Daily
Magenta = 8 Hour
Grey = 4hour
Pink = 1 hour
See the original below:
This will provide a good explanation with multiple charts and views which give enough evidence to create the possibility of the targets reaching the Fibonacci over extended pattern.
Analysis for 2021 outlook.
Multi-time frame analysis overview:
Weekly time frame of imbalance analysis:
Here is the weekly imbalances taking effect of the over extended Fibonacci sequence.
Here is the monthly timeframe:
While the 4K is a newly created all time high, the imbalance will now become a great area to exchange price action between the buyers and sellers.
Price has now created the interesting inefficient pricing leaving a long imbalance short effect, this will require patience while the sequence is completed for the Selling imbalance to take place.
Cross asset analysis:
Where are we with the Inflation ETF - RINF VS SPX?
An update below shows the positive correlation still maintaining structure.
Note- The Fibonacci sequence here shows the RINF - but the completion sequence aligns with 4,200+ zone where price will look to have created a new imbalance zone - whilst this is being created - assess the probabilities for the next part of the sequence.
EEM vs SPX
What does the emerging markets show us?
Well the imbalances are within the same as the US market, but the economic recovery in terms of imbalance price driving in the EEM - shows that whilst fundamentally there is more volatility . The activeness of these markets provides a telling Fibonacci extension target is not to dissimilar along with the SPX .
Beware of XAU , XAG - currently lagging behind upon a large correctional imbalance move as inflation remains low, plus the imbalance zone not ready yet for action to be taken.
Vix vs SPX
Do not forget about the VIX, the volatility index is currently at low levels within a monthly imbalance and creating a good sense of fractal movements within the lower time frames for example, the daily and 16 hour timeframes. Price is showing a good probability of supressed capitulation waters, in relation to the Fibonacci sequence - SPX will nearly or complete the move to $4360 est. and then the VIX will grow an increasing sign of bullish probability based on high inefficiency.
XAU USD vs DXY
DXY is showing a weakening further of the US dollar, but has touched upon a critical imbalance as previously analysed, comparing the imbalance upon XAU in correlation to the SPX, Xau has created an imbalance between $1700 - 1670 on the monthly rejection. This imbalance here can be retested as the SPX moves towards completing the Fibonacci extension sequence and forms its new imbalance upon a monthly time frame.
DXY is critical here as it forms a strong outlook in terms of the cross correlation of other assets (shown above) to give an indication of taking the risk in account that the identified imbalance is an area of interest to monitor moves for SPX and XAU alike in respective of awaiting the next action.
Excluded - Yields, Fed funds DXY - in depth
Do you enjoy the setups?
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
A Note before reading - this is a forecast quick analysis - based upon our trading strategy. This is tagged long, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.
Master Key for zones
Blue = Monthly
Purple = weekly
Scarlet - Four day
Orange = Daily
Magenta = 8 Hour
Grey = 4hour
Pink = 1 hour
See the original below:
This will provide a good explanation with multiple charts and views which give enough evidence to create the possibility of the targets reaching the Fibonacci over extended pattern.
Analysis for 2021 outlook.
Multi-time frame analysis overview:
Weekly time frame of imbalance analysis:
Here is the weekly imbalances taking effect of the over extended Fibonacci sequence.
Here is the monthly timeframe:
While the 4K is a newly created all time high, the imbalance will now become a great area to exchange price action between the buyers and sellers.
Price has now created the interesting inefficient pricing leaving a long imbalance short effect, this will require patience while the sequence is completed for the Selling imbalance to take place.
Cross asset analysis:
Where are we with the Inflation ETF - RINF VS SPX?
An update below shows the positive correlation still maintaining structure.
Note- The Fibonacci sequence here shows the RINF - but the completion sequence aligns with 4,200+ zone where price will look to have created a new imbalance zone - whilst this is being created - assess the probabilities for the next part of the sequence.
EEM vs SPX
What does the emerging markets show us?
Well the imbalances are within the same as the US market, but the economic recovery in terms of imbalance price driving in the EEM - shows that whilst fundamentally there is more volatility . The activeness of these markets provides a telling Fibonacci extension target is not to dissimilar along with the SPX .
Beware of XAU , XAG - currently lagging behind upon a large correctional imbalance move as inflation remains low, plus the imbalance zone not ready yet for action to be taken.
Vix vs SPX
Do not forget about the VIX, the volatility index is currently at low levels within a monthly imbalance and creating a good sense of fractal movements within the lower time frames for example, the daily and 16 hour timeframes. Price is showing a good probability of supressed capitulation waters, in relation to the Fibonacci sequence - SPX will nearly or complete the move to $4360 est. and then the VIX will grow an increasing sign of bullish probability based on high inefficiency.
XAU USD vs DXY
DXY is showing a weakening further of the US dollar, but has touched upon a critical imbalance as previously analysed, comparing the imbalance upon XAU in correlation to the SPX, Xau has created an imbalance between $1700 - 1670 on the monthly rejection. This imbalance here can be retested as the SPX moves towards completing the Fibonacci extension sequence and forms its new imbalance upon a monthly time frame.
DXY is critical here as it forms a strong outlook in terms of the cross correlation of other assets (shown above) to give an indication of taking the risk in account that the identified imbalance is an area of interest to monitor moves for SPX and XAU alike in respective of awaiting the next action.
Excluded - Yields, Fed funds DXY - in depth
Do you enjoy the setups?
- Professional analyst with 5+ years experience
- Focus on technical output not fundamentals
- Position and swing trades
- Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
