Target wavelength date for 1/19/22 inverted creating a low instead of a high at just about the right spot for a pattern leg up [or more] to get underway. This can occur when volatility is increasing and the arms index is hitting new large percentage moves lower in an extended period [this one began 1/5/22 which was the corresponding target date high]. Chart is a reprint from 1/19/22 pre-open. Today's pre-open puts ES above the lower trend line so far.
The summation index is beginning to initiate moves lower in the indicators starting yesterday. Particularly, the stochastic has moved lower to value 83 from upper 90's. This area may provide support for the indicators to recover or pause while the leg up in market prices completes.
If a turn signal up in the market prints, that would be significant so watching for either an up or down flag after each daily close. The last turn signal of any merit was at the Sept '21 lows. None of any significant size or placement inside expanded criteria have printed since then. Whipsaws may continue.
UPRO is keeping up locally relative to SVXY but missed a minimum overlap of 50% at the larger decline low relative to SVXY on 12/3/21. That magnitude of parallel move in UPRO is most often required to sling shot the market significantly higher so that puts a limit on the market making any large moves above the current range at least in certain instruments.
The pattern could keep printing until mid-March '22 getting narrower each week or there could be an event at the end of January/Feb as target dates are aligning in that time window also. Likely those will be pattern highs inside the diamond. A high degree terminal event is increasingly a possibility as patterns and frequencies are reminiscent of the 2000 high
The bots will flag here when they see a top. (1/25/20, 2/20/20)
The summation index is beginning to initiate moves lower in the indicators starting yesterday. Particularly, the stochastic has moved lower to value 83 from upper 90's. This area may provide support for the indicators to recover or pause while the leg up in market prices completes.
If a turn signal up in the market prints, that would be significant so watching for either an up or down flag after each daily close. The last turn signal of any merit was at the Sept '21 lows. None of any significant size or placement inside expanded criteria have printed since then. Whipsaws may continue.
UPRO is keeping up locally relative to SVXY but missed a minimum overlap of 50% at the larger decline low relative to SVXY on 12/3/21. That magnitude of parallel move in UPRO is most often required to sling shot the market significantly higher so that puts a limit on the market making any large moves above the current range at least in certain instruments.
The pattern could keep printing until mid-March '22 getting narrower each week or there could be an event at the end of January/Feb as target dates are aligning in that time window also. Likely those will be pattern highs inside the diamond. A high degree terminal event is increasingly a possibility as patterns and frequencies are reminiscent of the 2000 high
The bots will flag here when they see a top. (1/25/20, 2/20/20)
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