SPX Possible upthrust after distribution (UTAD) or more sideway?
Just a follow up on Wyckoff event analysis of the S&P 500. Today's large opening rally was not predicted by any of my month-long models, but it does stay within the resistance and support trend lines.
Couple of possible reasons.
1) The market reacted to the news today (covid treatment, etc.), but I doubt that. It has ignored it since the bottom.
2) Some very large investment firms decided now was the time to buy airlines, cruise lines, and Disney. Maybe because of the news or more likely because they had been taking a pounding and were ripe for the picking. They all had massive jumps today (that has made for some great swing trade for me since last week ;). Tech stocks are not doing quite as well, but are being pulled up with them (except NVDA, that is a rocket ship but its earnings report is due out, so ...). If this is true, then I expect a lot of sideways action. It could be an attempt by the big firms to push the market higher with a different allocation of stocks. Just like tech kept the airlines from completely tanking. That will take some serious buying though, thus I see it more sideways and testing of the resistance level.
3) The market is getting ready for a downturn. If you study the Wyckoff model, then today looks a lot like a UTAD event. A major test and even slight break of the resistance level. If this is true, then watch out for a bear trap.
Any way you slice it, the big investment institutions are working hard to manipulate the market. Only time will tell if they win or the weight of the economy takes it toll.
Hope this helps.
Couple of possible reasons.
1) The market reacted to the news today (covid treatment, etc.), but I doubt that. It has ignored it since the bottom.
2) Some very large investment firms decided now was the time to buy airlines, cruise lines, and Disney. Maybe because of the news or more likely because they had been taking a pounding and were ripe for the picking. They all had massive jumps today (that has made for some great swing trade for me since last week ;). Tech stocks are not doing quite as well, but are being pulled up with them (except NVDA, that is a rocket ship but its earnings report is due out, so ...). If this is true, then I expect a lot of sideways action. It could be an attempt by the big firms to push the market higher with a different allocation of stocks. Just like tech kept the airlines from completely tanking. That will take some serious buying though, thus I see it more sideways and testing of the resistance level.
3) The market is getting ready for a downturn. If you study the Wyckoff model, then today looks a lot like a UTAD event. A major test and even slight break of the resistance level. If this is true, then watch out for a bear trap.
Any way you slice it, the big investment institutions are working hard to manipulate the market. Only time will tell if they win or the weight of the economy takes it toll.
Hope this helps.
