Quiet buying Sunday night has pushed index futures to a decisive level where just a little more progress would tip the short-term outlook sharply in bulls’ favor. They had more inspiration from AMZN’s crazed rally last week than they could handle, but merely playing catch-up in the days ahead is likely to lend buoyancy to the broad averages. For precise benchmarks, check out my latest update for the June E-Mini S&P contract. If you don’t subscribe but would like a free peek, click here for a no-risk trial subscription. It will give you access to Rick’s Picks, including the chat room, touts and impromptu ‘requests’ sessions for two weeks.
Quiet Action Near a Key Threshold
- April 30, 2018, 10:09 am
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April 29, 2018, 11:38 pm
I wouldn’t call +5.75 decisive even though you refer to a level and not a change.. But, while I am very surprised not to read more mentions of moving averages, let me offer one I see now. On Friday, April 27, the low on the SPX was 2659.01–within a few pennies of the 150-day MA. So, there is, again, consistent, yet convenient, evidence of manipulation. Also, Wednesday’s low was “right on” the 200-day MA. So, the recovery from the recent selloff is continuing just as it should to end the month in a reasonably favorable position. Which will probably fool people and continue into early May. But, not good enough to even get close to exceeding the recent peak of 2717.49. Closing above the 150-day MA may not likely occur since the big boyz are anxious to bring us down again.
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Thanks for your clear call, Thomas. I’m sure it will attract some followers. RA
The nature of parabolic trends, are that once the break from the buying panic is broken, the chase that had carried the market without pause beyond expectations, cannot reestablish at the same degree of momentum required by that past uptrend that was in play.
The markets start to create failures trying to reestablish upside momentum, but lower highs and lower lows override the process, capital looses trust and sells at these lower highs reinforcing the market with a negative slant.
The market ‘under current’ of the pass has now rise its head above the water level and the tide is turned towards a new direction for the larger and longer degree.
The nature of parabolic trends, are that once the break from the buying panic is broken, the chase that had carried the market without pause beyond expectations, cannot reestablish at the same degree of momentum required by that past uptrend that was in play.
The markets start to create failures trying to reestablish upside momentum, but lower highs and lower lows override the process, capital looses trust and sells at these lower highs reinforcing the market with a negative slant.
The market ‘under current’ of the pass has now rise its head above the water level and the tide is turned towards a new direction for the larger and longer degree.
This event has taken place, wishful thinking sinks in and persons ‘hold’ and ‘buy’ on the way downward again, and again.
Large players of the pass (the news stocks, the leaders) in value drop hard, 50-70% at lest.
The Parabolic Trend that was in play is only seen and realize well after it is complete and has had a compete round turn.
Have a great day Rick.