Market Update 12/28/21 The Bullish Reversal in Natural Gas, and the Strongest Santa Claus Rally in 20 Years?

The Fake financial news networks are calling this the greatest "Santa Claus rally", in 20 years, but it's just - end of year - window dressing to me, and Santa is the perfect scapegoat for market manipulation during the holidays. 

First off Natural Gas  

We saw a little shakeout in Natural Gas last week (on Thursday), where I recommended it, in real time...

$UNG #NatGas pulls back to the lower end of the range. Now's you're chance, NG, Bulls pic.twitter.com/vIZjtDtlt6

— Veteran Market Timer (@3Xtraders) December 23, 2021

Yesterday, we saw NatGas rally reverse and rally 7.77% (that seems like an amazing coincidence 777) 

3 different NatGas Charts 

$UNG - this is the same 15 min. chart - as above - updated. See the broadening (bottom) triangle pattern. So, looks like it whipsawed into a bottom. 

$UNG - daily candlestick chart - looks like a doji reversal candle. Funny, some fool on twitter was trolling me, and talking about a bearish candlestick pattern. 

That brings me to the 3rd chart

$UNG - DCS - Seeing a larger broadening pattern with res. around the 4.20 level, but yesterday it was sold at the 20 day moving average.

 I think it wants to trade in the top of the larger pattern, but probably needs to consolidate (lower) in the near term. Expect lots a head fakes in that type of pattern; not for the weak of heart. 

Next, yesterday's ridiculous rally on the $SPX as viewed on the 5 min chart. 

 $SPX - I couldn't believe what I was seeing! 

$SPX is being bought at the 10 day X 5 min. MA. #SantaClausRally being reported 🤣 pic.twitter.com/fjlYKG2Qei

— Veteran Market Timer (@3Xtraders) December 27, 2021

It was about this time, the $SPX rolled over, and took out the 20X moving average, before finding support at the 50X. 

$SPX - bought at the 50X 5 min average. From there it broke out to another record high close.

Edit 12/29/21

 

$SPX bounces off the 50X 5 min.
Machines are trading this junk pic.twitter.com/y4IPCpZEhy

— Veteran Market Timer (@3Xtraders) December 27, 2021

 

Is that crazy or what? I've never seen charts behave like this! I'm talking about moving averages on 5 min. charts. 

So, where is the $SPX going? 4800, naturally. All these pumpers have are round number targets, and this target looks goo on my 30 min. chart. It could even hold up into new years, or pull back and retest the top of the pattern on Monday. 

$SPX 30 min. 

So, if that chart pattern is correct, the market can continue to hold up, with little further gains, until March. 1 Month to pullback to the lower end of the pattern, and another month to retest the highs again. Then a major reversal, and a correction, which could continue into the summer. 

I've added the 30 min $SPX to the public charts and, and updated the $VIX chart as well. 

Take Care, AA 

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