S&P about to explode. Massive bull signs for the upcoming years

٢٠ سبتمبر ٢٠١٩

Hi and welcome to this analysis on the S&P indexes. As you can see from the chart we are in a massive inverse head and shoulder pattern. After the indexes and the overall stock market got its 20% correction last year, 2019 has been nothing but extremely bullish. Constantly trying to make new ATH, with small rejections and higher lows. The media and fake news are telling you "recession is coming" "the economy is a bubble" etc. While this is true to some degree, with the crazy debt and money printing we have around the world, we are still in the longest bull run in history, being in its 10th year now and as we all know the stronger a trend is, the longer it lasts. Recently this week it was announced that the fed were going to lower interest rates by 0.25% from 2% to 1.75% and pumping another $100 billion into the economy. Trump will do all in his power to keep the economy strong during his run and I think the markets are already pricing in that he will win his next term and sit for another 4 years. If we go to the weekly chart of the S&P we will see that we touched the 200MA in December which we hadn't touched since October 2011! Also, we can see that we had a morning star Doji pattern around the same time. These are all extremely strong signs and a bounce like this shows how significant and strong this indicator was at that time. The past month has been very choppy before we made a breakout towards the upside. For those of you that are familiar with VPC(volatility contraction point), we can see that it's unfolding on the daily chart and the market is setting up to test 310-320 towards the end of the year. A wise man once said, don't listen to what they say, look at what they do! We are gearing up for an even stronger 2020 and years ahead in the economy before the inevitable next bubble and collapse. If you are locked by fear all the time you will never know how to pull the trigger and jump into the markets.


Knowing is not enough, we must apply. Willing is not enough, we must do ~ Bruce Lee


Arrivederci!