SPX is probing the top of its resistance zone, closed above the Feb 2022 low and slightly shy of the Jan 2022 low (Chart 1)
A reaction (down) from current levels could be labeled as a reversal from an ending expanding triangle or wave C-down of an expanded flat (Chart 2)
Chart 3 updates the larger tracking scenarios.
Charts -
ReplyDeleteSPX etc... need to power up from here for the blue wave 5 to be valid.
No change to SMAC indicators from last report.
Ny DJIA SMAC indicator turned down yesterday on the MON 22 May mkt close.
ReplyDeleteMy SPX SMAC indicator turned down yesterday on the TUES 23 May mkt close.
ReplyDeleteMy W5000 SMAC indicator also turned down yesterday on the TUES 23 May mkt close.
ReplyDeleteFor the purposes of this MTU blog, note that the SMAC is also relevant to the UKX & DAX indexes, and today 24 May following the turn downs in it noted above (of DJIA SPX W5000) those 2 indexes broke down strongly out of their sideways.topping patterns being down 135 and 310 pts on the close respectively being largest fall since March.
ReplyDeleteAnyway we will see what happens from this.
The SMAC can detect the hidden turning points - sometimes just before, at, or slightly after a high or low. But it will not tell you the intensity of the next move. It usually will tell you what the mkt direction is not until the SMAC reverses.