[Click on the picture below to watch my analysis of current price action in the S&P 500]
Since my last market update, there has been some immense volatility. But if you go and have a look at my last video, you will see that I warned you there could be a huge move if the low from January 2018 couldn’t hold in the S&P 500. I even gave you a range of where I thought the S&P 500 could get to and the bottom of my range was within five points of the actual low seen over the past few weeks.
In this week’s update, I have a look at the big picture now that the quarterly sell pivot has been confirmed in the S&P 500. The gist of it is that any rallies from here are to be seen as bear market rallies rather than primary up-waves in a bull market.
The short-term charts are looking fairly bullish after the US employment numbers surprised to the upside and the US Fed Chairman Jerome Powell eased up on his hawkish rhetoric, but as far as I’m concerned a rally over the next few weeks/months will meet stiff resistance at some point, so if you are looking to buy the rally I’d say not to be too greedy.
Editor, Alpha Wave Trader