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Thursday, October 24, 2019

Market Update 10/24/2018 - The Similarities Between Today's Bullish Chart Pattern, And The One We Saw In 2008

I spent most the morning updating charts, and I'm not sure where to start. There's a lot going on and I'm covering several sectors - Gold, Oil, Energy, Tech, and Biotech. Not sure I have time to get to it all, but maybe this will extend into a Part 2. 

Yesterday's Trade could not have gone better, and the auto-refresh feature on the public charts actually worked for a change! That's a good thing, because I was catching up on some lost sleep, during the pullback, and sawing logs during the breakout (back above the 3000 level.

$SPX - Pulled back into my little purple range (consolidation), and bounced out of the hole after retesting support. If you're watching the 1 min. chart - located in the public charts area - then you got to see it play out in real time.

$SPX - alternate 1 min chart view - If this rally continues, the next resistance levels are 3006.70, 3009.95 shown on the updated chart in the public charts area, but I also want to point out this little range (seen in purple). No doubt that was sold, because it looks like the top of the range in a little suckers rally. Futures are pointed up, but only slightly, so be alert on this Elevated $VIX - still sitting above the 14 level. I'm also seeing red flags in the energy sector, as I'll explain below.     

  $SPX - Looking at the 15 min chart. I'm seeing an upturned triangle pattern, and if that manages to complete, I'll be really bearish, and I'm not even sure this is an upturned triangle. It resemble an upturned triangle, but so did the DOW in 2008

$SPX 2008 - Here's why I don't trust the old upturned triangle on today's market. Here's what happened when that pattern broke in the crash of 2008. It was historic!

$DOW - 2019

Comparing the apparent bullish contracting triangle pattern of 2008, to the one on today's short term, and 1 year chart. Note: this triangle is only contracting slightly, but it is indeed a triangle pattern.  

I could easilly spend another 3 hours covering Gold, Miners, Oil, Energy, and Biotech, but I only got 10 mins.

Gold: I alerted to a reversal on Gold, and yesterday we saw it, but we didn't much movement.

Miners - I've organized the miner charts, but putting them in order. See the warnings there.

Platinum - we saw Platinum Rally, but that looks like it could quickly come to an end

Energy: Sell this DCB (dead cat bounce)

Sell Oil - based on the resistance on the 3X Oil Bull, and where futures are trading.

I don't see a trade in Biotch, but the short sellers continue to be squeezed out of certain names.

I'll get more into the continuing short squeezes in the next update

Later, AA

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