In this video, to end this first week in August, I wanted to go deeper on a number of issues surrounding what has been a strange state of affairs when it comes to the S&P500.
For this reason, I focused on quite a few topics, making this video a little longer than usual:
- Daily chart three-strikes instance of CCI leading into a negative divergence: what does it mean?
- hourly chart symmetrical triangle chart formation: what are its breakout performance stats?
- monthly time-frame: what is the state of play for continuation of the downtrend?
- what is the power of events from next week (CPI, mainly) with regard to moving out of this stall?
- is the bear market rally (BMR) over? I think it is, and the Tesla sell-off may be a clue;
- can the Fed fight the inflation surge? Maybe not, but neither are they ‘pivoting’ any time soon;
- the daily (21-period) ATR shows April-lows volatility, pointing to major bear trend resumption ahead;
- RSI on the daily is leading into the 60 area, again signalling an overbought BMR scenario;
- the FedWatch Tool (CME) has shot up the Sep. 75bps probability to 70.5% this week…
…as a swathe of Fed speakers this week made it clear the Fed is not intending to slow down.
I hope you enjoyed the video. Please like, comment, subscribe and share at will!
Below are the links for the sites I used in the video.
Have a great weekend and see you on Monday 8th for my next video.
Francesco / FreeFX