Previous Article: Part 1
In my previous article on October 10, I talked about, “Though there are still some concerning signals in the overall market, with recent bullish action, buyers are starting to find some confidence here which that could lead to a complete reversal.” And I believe the market has been reversed and ready to resume back to it’s primary-term uptrend.
In this article, I want to show you related “before” & “after” charts to show you where we were just in few months back and where we are today. There are always opinions, feelings, emotions, assertions, & predication upon someone’s biased view of the market because of their involvement or maybe a hidden agenda, which means people lie (intentionally or non-intentionally). Only the price-action is true, and it always prevails to beat all the potential “guesses” from the “Gurus.”
That’s why Technical Analysis is the most effective way of gauging the market.
Bullish-Divergence Reversal
S&P 500 ($SPX) Daily Chart with MACD Screened on 9/28/15
S&P 500 ($SPX) Daily Chart with MACD Today
Uptrend Support
Previous Analysis on This Chart: Click Here
S&P 500 ($SPX) Daily Line-Chart Screened On 9/28/2015
S&P 500 ($SPX) Daily Line-Chart Today
Reversal Candles
Previous Analysis on This Chart: Click Here
S&P 500 ($SPX) Weekly Candle-Chart Screened on 10/2/2015
S&P 500 ($SPX) Weekly Candle-Chart Today
Weekly-Chart Uptrend
Previous Analysis on These Charts: Click Here
Dow Jones Industrial Average Weekly-Chart Today
QQQ Weekly-Chart Screened Today
Russell 2000 ($RUT) Weekly-Chart Screened Today
Semiconductor ETF (SMH) Weekly-Chart Screened Today
ISHARES Transportation Average (IYT) Weekly-Chart Screened Today
NYSE Composite Index ($NYA) Weekly-Chart Screened Today
Final Thoughts
“Trend is assumed to be in effect until it gives us a clear signal that it has been reversed.” As of today, we do not have clear signal (no reversal signal at all for that matter–technically speaking) that the market has been reversed. Yes, we do have “fear” in the market, but where is that fear coming from? From the market? No from the people. Market does not care what people feel or what their emotional-level is like. Our job is not to predict things, but to react to the market’s behavior.
We are dealing with prolonged uptrend since 2009, it means we must understand the big picture, and we must scrutinize it’s primary-term uptrend to understand current market sentiment. The major uptrend is still in effect, it means, we must give the “benefit of the doubt” to the buyers.
As I have been saying in my videos, this is an opportunity as the market resume back up to it’s primary-term uptrend.
Also seen on Investing.com
