See 'Original post' below these updates.
Update: 3/13/20 2:24pm EST. Still do not see any confirming 'bounce/bottom' vectors for this leg. Even if the current ES low (2393.50) does not get taken out. Volatility derivatives are printing new highs (VXX). So, until we see a sustained reversal in the vectors and of the correct form, anything can happen in either direction.
Update: 3/13/20 12:00pm EST. The Global Focus Signal is displaying '50% Neutral' which is not supportive of a sustained bounce so far today. Let's see if there's a change in that by the close. It is slowly trying to drift it's way to less than 50% neutral. EOD: Nope- still don't see it. Possibly because we are only half way done going lower. It has been almost non-existent as far showing any sustained concern.
Since 1/13/20 the market has repeatedly finished the week in negative breadth territory (6 out of 8 = 75%) including counting this week (week #8) which is finishing in positive territory so far barring a large reversal before the close today. On the daily level (as well as on the weekly histogram bars) there is a developing positive divergence in breadth that most likely will provide a reasonable sized retrace event not too far from now.
If prices finish flattish or at a new low, it may inflate the positive divergence especially if the breadth move today closes near it's better performance level and does not tank at the close.
Original post
Confirmation of how the bigger structure(s) are unfolding is happening daily now. There is so much more yet going to happen it is vital to see the structure as accurately as possible to stay on the right side of this market.
Once the SVXY and SPX megaphones at this level have completed filling up the internal prices inventory, they will most probably move to the next lower megaphone to accomplish the same task in there. Be aware that the size and price expansion scale differs between market index megaphone SPX (ES) and the volatility derivative megaphone SVXY..
See the main explanation of how it all is connecting below this next diagram.
The question then begs- why megaphone structures at the end of a wave 3 of a grand supercycle? The answer simply is that a corrective leg can and sometimes does occur at the end of an impulsive leg and this is one of those times according to Neely and others. Megaphones by nature are overlapping structures which is also the characteristic of a corrective pattern.
See Critical Long-Term Review Here
Update: 3/13/20 2:24pm EST. Still do not see any confirming 'bounce/bottom' vectors for this leg. Even if the current ES low (2393.50) does not get taken out. Volatility derivatives are printing new highs (VXX). So, until we see a sustained reversal in the vectors and of the correct form, anything can happen in either direction.
Update: 3/13/20 12:00pm EST. The Global Focus Signal is displaying '50% Neutral' which is not supportive of a sustained bounce so far today. Let's see if there's a change in that by the close. It is slowly trying to drift it's way to less than 50% neutral. EOD: Nope- still don't see it. Possibly because we are only half way done going lower. It has been almost non-existent as far showing any sustained concern.
Since 1/13/20 the market has repeatedly finished the week in negative breadth territory (6 out of 8 = 75%) including counting this week (week #8) which is finishing in positive territory so far barring a large reversal before the close today. On the daily level (as well as on the weekly histogram bars) there is a developing positive divergence in breadth that most likely will provide a reasonable sized retrace event not too far from now.
If prices finish flattish or at a new low, it may inflate the positive divergence especially if the breadth move today closes near it's better performance level and does not tank at the close.
Original post
Confirmation of how the bigger structure(s) are unfolding is happening daily now. There is so much more yet going to happen it is vital to see the structure as accurately as possible to stay on the right side of this market.
Once the SVXY and SPX megaphones at this level have completed filling up the internal prices inventory, they will most probably move to the next lower megaphone to accomplish the same task in there. Be aware that the size and price expansion scale differs between market index megaphone SPX (ES) and the volatility derivative megaphone SVXY..
See the main explanation of how it all is connecting below this next diagram.
The question then begs- why megaphone structures at the end of a wave 3 of a grand supercycle? The answer simply is that a corrective leg can and sometimes does occur at the end of an impulsive leg and this is one of those times according to Neely and others. Megaphones by nature are overlapping structures which is also the characteristic of a corrective pattern.
See Critical Long-Term Review Here
See Important Long-Term VIX Study
..and possible bounces/bottoms: (2/28/20) , {3/6/20, 3/9/20, ? } x 3**
This Information Is For Entertainment Purposes Only. Financial Loss Can Occur From Investing.
Our favorite go to site- McVerry Report
Our favorite go to site- McVerry Report
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