That’s right! Isn’t it nice of the market to drop all the prices this week for Black Friday, Cyber Monday sale. It just so happens that the market is about to come down and test a trend line that has acted as support all year. The lower Trend line that has the A acted as support for the second time as a bounce spot. When we pull it back on the Weekly chart below it becomes more clear.
This will now be the third test of the trend line this year. Just recently I learned about the Elliot Wave and to me this is looking like the SPY wants to drop further in this correction C wave to the Monthly 200 SMA of roughly 236. In looking at all the FAANG Stocks $FB, $APPL, $AMZN, $NFLX and $GOOGL are still dropping below the 200 SMA. In Fact more than 60% of the NYSE stocks are below the 200 SMA a good indication of a bearish trend. The furhther out that you pull the indexes you will see that there is a bigger trend of down for now. Also on the weekly chart we do not have the big volume coming in yet that indicates the buying is happening. Will definitely be watching the test of the trend line for a break or bounce.
What are your thoughts on the market sentiment? Shot me your thoughts in the comment area.
The market as a whole isnt the only area for sales. There are a bunch of sales like everywhere else.
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I hope that these analysis posts are helping you to see the big picture of the market right now. This correction or bigger bear market is a normal occurance of the market to later set new highs. It will be determined in my opinion when we see that big candle like the first test of the trend line that indicates buying is happening. The volume dictates who is winning the bears or the bulls.
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