There's been a long running debate between the technical analysis chartists and the fundamentalists and both sides can make their case for being "right". Both sides often think that their way is best and the other side is full of you know what...
Since no one can predict the future how did the recent Federal Reserve's hawkish position on interest rates that's filled the news just so happen to occur during a time when chartists like us were anticipating a potential pull back?
(This is an updated post to include recent news and recent charts because this scenario occurs over and over again...)
So often I get asked "Tom, where do you think the market is heading?"
I start by saying the better question is "where could the market be heading?"
Because what I think doesn't matter to price action and no one knows with any certainty where the markets are heading.
I don't make predictions, I don't call tops/bottoms however, I may react to price when it reaches a predetermined level of interest by trading or investing in that particular index, equity, commodity, Forex, etc.
Let's take the S&P 500 for example using it's futures ticker /ES...
While the New York Stock Exchange (NYSE) was closed Monday in observance of Memorial Day the global after-hours electronic trading system (GLOBEX) opened as normal Sunday evening at 6pm eastern time. And given the US debt ceiling headline news over the long weekend the S&P 500 futures ticker /ES gapped up about 20 points on the open to keep the bulls firmly in control.
On the current ES weekly chart I've only marked it up with Support/Resistance and Trend. Also known as basic structure. In this view traders can see that price often ping pongs between historical levels before proceeding in its next direction.
If you'd like to enroll in the same exact Introduction to Price Action Trading using Support/Resistance and Trend course that I took earlier in my trading career we're offering it at an incredibly low price this week revealed at this link.
By definition, a bear market is when price drops 20% or more from its recent or all time highs. So for the S&P 500 ticker /ES one could say that technically speaking the bear market is over because price is now approximately 15% off the all time high set back in October 2021.
But is the recent run up simply a "Bear Market Rally" or are the bulls firmly back in charge gunning for new all time highs? See this before your next trade!
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Recorded Thursday November 3rd, 2022 04:30 PM Eastern Time
The Volatility Index (VIX) moves inversely to the indices and can often be an indicator of upcoming market moves...
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But what about your trading? Have you made resolutions before? Like have more discipline? More patience? Stop chasing trades? Some may even consider quitting trading altogether? Read more...
We frequently get asked "How High Can the Markets Go?"
The true answer is no one really knows for sure but technical analysis can help determine potential targets.
Once a market reaches its target there's no telling what can happen then. The prudent thing as a trader is to allow it time to develop new structure.
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