Whelp, this is sure to make things a bit interesting for next week... Just noticed on the 3yr daily SPX chart that the last time we hit the 200DMA (red line) was during the last meaningful pullback which was back around the Presidential Election in November of 2016. When we hit the 200DMA then that pretty much market the bottom of the down move and as you can see what happened after that. We rallied back up to ATHs in a big way. I'm not saying this same scenario would play out here again, but I do find it at least somewhat interesting how we touched the 200DMA as well as an uptrend line that goes back to the last market correction in Feb. 2016 almost to tee. Looking forward to seeing what next week will bring us!
Definitely will be interesting to see whether the volatility will stay high next week It has been a very interesting and a wild week
Whelp, I guess we're not finishing at the worst week since 2008 or 2011 ... looks like we closed down just over -5% on the week for the SPX so it only takes us back to the worst week since Jan. 2016
BTW, pretty cool to see a weekly thread crack over 200 posts. Been a while since we've seen that. Thanks for all of the great contributions from everyone in here this week. Have a great weekend everyone!
This chart shows the volume profile curve of the activity on the SPX since it broke out from the 1570 double top. The teal/purple bars represent 70% of the volume activity in the breakout. IMO the best new buy opportunity is down at the POC (point of control aka "most active price"), as once you re-enter an old curve - a reversion to the mean/mode is likely. Market makers know these levels and it's a more optimal place to make a book (or even close out old positions) instead of in a downtrend/uptrend. There's a smaller volume profile curve towards the top right corner that I put in there. It represents the straight up move we saw starting in November 2017. We tested the POC (small red line) inside that curve this week and tried it for support, but that's an ugly supply candle, not one of absorption.
