Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Global Macro Monitor
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

The S&P500’s Moment Of Truth

% of readers think this story is Fact. Add your two cents.


Can it really be this easy?  Another Bull Trap With A Doji On Top?

If this bear market repeats or even rhymes with its recent history, here is the scenario:

Wednesday:  The S&P500 trades through its 200-day moving average and closes with a nicely formed green candlestick or an attractive Doji.

Thursday:  The market opens near Wednesday’s close, trades 10-15 points higher, gives it all back then some, only to close unched, tracing out a classic Doji candlestick.   Or, follows up Wednesday’s Doji with a big sell-off back through the 200-day.

Friday:  The bottom drops out of the market and breaks the 200-day.

It’s never that easy.

The market psychology has changed and believes it now owns the Fed.

China Deal

A China trade deal is going to get done as Trump will be forced to cave on the big issues and the two supers ink probably nothing more than our pig in a poke in the Year of the Pig,

One of Donald Trump’s most persistent economic promises has been to rewrite the U.S. relationship with China. Yet as he approaches a potential deal, some of the very hawks who have cheered on the president’s trade war already fear he may end up falling short.

With less than a month before a March 1 deadline for either a deal or an increase in U.S. tariffs, hardliners inside and outside the administration fret Trump is being outplayed by Chinese President Xi Jinping and seduced by what they see as empty promises.  – Bloomberg, Feb 4th

“Trump is being outplayed by President Xi Jinping” has been an ongoing theme here at Global Macro Monitor.   Never a political statement just analysis and sizing up the competition.

Hate to (no, not really) say it again,  “you heard it here first,” folks!

Me thinks Trump & Co. are going to be played by Xi & Co. like a Chinese fiddle. – GMM, March 27th

Imagine the global chaos if Trump agrees with Xi on heads of terms and the Fox News Triumvirate —  Sean, Rush, and Ann — start pounding POTUS as weak, just as they did over the first Senate government funding deal, which didn’t include a Wall.  It’s always prudent to price some Mad King risk with this White House.

The Setup

Because the S&P500 is now so overbought – the highest RSI since the market top – the risk of another facial from a short position is limited, in our opinion.    Waiting for the 200-day to be penetrated, then setting a short limit order just a few points below the 200-day, right around today’s close.

The Stop Signal

Two or three green candle closes above the 200-day sets the index up to challenge the December high and key Fibo at 2800.   Whoops, we were wrong again.

As always we do reserve the right to be wrong, as we, or you, or anyone else, don’t know jack about the future,

Stay frosty, comrades.


Source: https://macromon.wordpress.com/2019/02/05/the-sp500s-moment-of-truth/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.