Category Archives: Technical Analysis

Death Cross in SP500 After 1016 Days

Unless the S&P 500 closes on Friday above 2047.86, there will be a 50-200 death cross. The last one occurred 1016 ago on August 12, 2011. It appears that this type of signals like the month of August. Share

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Quantitative Analysis of the Stock Market Correction

The return of the last four days is slightly not normal and the Hurst exponent indicates a possible painful process towards a bottom. Share

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Short-Squeeze Inside a 129-Day Consolidation Channel

There will be more short-squeeze moves such as the one we had yesterday while the S&P 500 tries to rationalize the direction of its next move. Shorts with deep pockets may survive the local squeezes only to see the index … Continue reading

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Momentum is Price Breakout

Lately, there is a tendency to associate momentum, relative strength or cross-sectional, to quantitative analysis and label absolute momentum as technical analysis. Nothing can be further from the truth. Momentum is a trivial concept that is based on breakouts above … Continue reading

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SP500 Attractor

The S&P 500 index is trapped inside a 119-day consolidation channel between 2135 and 2040. There is an attractor near the February lows that offers strong support for a technical correction but a move below that would possibly require a … Continue reading

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An Ominous Random Pattern

I show in the blog that the candlestick pattern known as bearish engulfing is no more than a random formation even when it occurs near 52-week highs. Although this and a host of other related patterns are useless for making … Continue reading

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S&P 500: Largest 5-Day Gain Since 2014 Inside a 113-Day Consolidation Channel

The S&P 500 has had its best 5-day gain since December of last year but price action is still trapped inside a 113-day consolidation channel. The gain of the last five days could be a signal of a new uptrend … Continue reading

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Chartist Claims Debunked With Simple Math

A chartist I know sees a massive top formation in S&P 500. I replied to him that he has been wrong several times in the past with such random formations. He argued that although he is frequently wrong, almost 80% … Continue reading

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