The 2 pictures above are of the S&P 500 daily and the top one show the big picture from where we started January 1 this year to the present. The Purple line show the rise in prices and we have moved a long way. The Second picture zooms in on the current 15 or so days to show exactly what is going on. I think we are safe at the moment and to read this chart with no news, we are consolidating. If we loose the box, we are going to be in trouble. Please read the notes on the charts.
Above is the Small Cap and in the top picture is what I call the big picture and you can see via the purple line, it has been good. As you look at the 2nd zoomed in pic, you can see we have a wedge and in due time, it will be resolved in one direction or the other. It concerns me now that we have closed 2 days in a row below the CBL, but that is just a warning. If you look at the closing price, the little hash mark to the right of the last bar, we are all over the 50 day moving average and we look to be heading down. I do not have much confidence that price will hold or reverse here, but I will watch and wait tomorrow for more direction.
The International index above is showing almost the exact traits as the Small Cap. I have very little faith that price holds here, but I will wait for price to show me what to do.
Conclusion: I think it is obvious that we are in trouble. So why not just bail? I would not blame you if you did, but I just need to watch a little further to let price guide me. So I will watch and hold through tomorrow, but I’m not very confident that these price levels will hold or reverse tomorrow.
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