SPX forming Big Sell Off Formation?
Market is trapped in a short term consolidation range. According to us, the brutal moves in early August have “destroyed” the faith among the investors. At these levels it is very much noise trading, disturbing the bigger price picture. Are we forming another giant HS formation (where people get “sucked in” omce more), which will eventually break down, and wipe out much more of the market?
Below some more charts suggesting the above.
Skew VS SPX – Rather significant divergence remains and skew trend continues to remain down.
Courtesy Macro Story
It’s funny because just a moment before I have checked your post, I had exactly the same thought looking at the SP500 chart. Will see how this plays out.
Like your site. For me, a breath of fresh air from all the politics. Much like the BBC trader, i am indepent also, and only require three things to trade.
1) That there is a market of some kind.
2) That i have access to said market.
3) That said market moves at least in a 5-10 point range.
Hopefully politics won’t pollute this site.
Regards.
Yeah you might be right re the H&S but that doesn’t stop us from having a long bias whilst it makes its way up there does it?
Also, I’m not sure the data is falling off a cliff to the extent that everyone seems to think it is. Well not at the moment. Lots of people seem to think so but for me we’re currently in a period of stagnation; some minor growth here, some minor contraction there. Lots of folk obviously have access to better data (or better binoculars) than I.
Or maybe I’m just thick. Could be.