LunaticTrader

Investing with the Moon

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 920 other subscribers
  • Archives

  • Categories

  • Tags

    $EURUSD 1920s Bitcoin bonds Brazil Brexit China crash Crude Oil DAX Dow 32000 Dow Jones Industrial Average Earl Eclipse Euro financial astrology FTSE 100 Index gold Greece Hong Kong iceberg key levels long term LT wave lunar cycle lunar cycles mania Market trend method MoM monthly Nasdaq Nikkei oil Oil Prices outlook QE Quantitative easing reversal levels S&P 500 SKEW solar cycle stock market stocks strategy Sunspot Technical analysis TLT VIX weekly

Pullback time

Posted by Dan on November 9, 2015

Markets are trying to catch their breath after the strong run in October. We may see another rally attempt this week, but I think we are going to get more of a pullback before stocks go higher again next year. With many indexes near their all time highs again a lot of investors will probably take some profits.
Let’s have a look at the S&P 500 (click image to enlarge it):

S&P 500

The S&P is bumping into overhead resistance in the 2100-2130 area. Technically the the fast Earl (blue line) is showing a bearish divergence while the slower Earl2 (orange line) is finally flattening out at a very high level. This is the kind of setup that normally starts a pullback of 4 to 6 weeks.
So, if stocks try to climb again this week it will be a chance to take some profits. Next week we will start a new lunar red period and I think the S&P will use it to retest the 2050 level.

Good luck,

Danny

4 Responses to “Pullback time”

  1. sskm214 said

    Hi Danny, does the price work out the bearish divergence as shown by the fast earl blue line? Looks like the divergence starts around the 2000 level.

    Thanks
    SSK

    • Danny said

      Hi,

      Good question.
      The price at which divergence starts is not necessarily an indication of how low a correction will go. It may be very shallow and it may fall well below 2000.
      Market keeps going up because slower Earl2 has kept rising. But now it is turning down. So, further gains will not come so easy until Earl2 bottoms out again..

      Danny

  2. AlanSW said

    Thanks, Danny. Excellent and very useful analysis.

Post a comment (disagreement also welcome):

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

 
%d bloggers like this: