Lee AdlerThis rally has been a grinder. Since it began, setups have been harder to trust, in a market driven more by headlines than structure. I’ve been too cautious, as short-term waves reversed with near unprecedented ferocity. But the charts are starting to look more normal. This week, I found five shorts I liked and 3 longs. This is still cycle-based with rigorous questioning of setups, while finding more that I’m comfortable adding to the list.
The market is still riding a powerful meltup, and short and intermediate-term cycle projections are pointing even higher than they were last week. The Moody’s downgrade has triggered a pullback this morning, but the selloff must follow through to break trend. Otherwise, the index remains on course for potential exhaustion targets above xxxx—even as the Cycle Wave Composite and long-term structures warn that this remains a topping process.
The S&P 500 continued its sharp rally, bolstered by April’s massive Treasury paydowns. The surge has driven prices into upper channel resistances across short, intermediate, and long-term cycle frameworks. The rally remains intact, but multiple cycle indicators suggest the risk of reversal is rising. Here’s what to look for.
As we get into the heart of baseball season, I’ve been in a slump, finding it difficult to catch up with the fastballs that the market has been tossing. This week, I saw only one pitch that I liked enough to take a swing. It was a buy in an out of favor sector, energy. I chose not to swing at buy signals that have already been on a run. Having been late on the first strike last month, now is not the time to become impatient and chase.
Technical Trader subscribers click here to download the full report. Last week’s short term cycle projections of 5550-5700 have been reached. All major cycles remain…
Subscribers: Download the full report here I remain cautious about adding picks in the environment where the market is highly susceptible to news response with…
Short-term cycle highs are due soon and we have specific cycle projections along with key resistance and support levels. Failure to clear resistance now would trigger moves to or through support.
Subscribers: Download the full report here Liquidity Trader’s long/short swing trade selection screens are now posted. The algorithm is designed to filter out noise driven…
The S&P 500 reversed at long-term resistance and remains in a short-term downtrend. A new, sharper descending channel may be forming.
Subscribers: Download the full report here Liquidity Trader’s long/short swing trade selection screens are now posted. The algo continues to struggle with the rapidity of…
The market has decisively broken multiple structural supports, with downside momentum accelerating across all major indexes. The Cycle Wave Composite™ confirms that a major bear market is under way, and new downside projections are coming into focus.
Subscribers: Download the full report here Liquidity Trader’s long/short swing trade selection screens are now posted. It was an embarrassing performance. Amid an epic crash,…