S&P 500 Pivot Point
STOCK MARKET AT IMPORTANT PIVOT POINT
The Stock Market is now at an important pivot point in price.
As described in my post from some months back (see the August 29th post), the ‘unimaginable’ event (a rising stock market which hardly anyone proposed at that time) has, not only occurred, but, is now on the verge of accelerating even higher and faster.
Despite all the doom and gloom among the average investors (and actually, because of it), the big money has positioned themselves for the unexpected; a strong upwards price movement with absolutely no fundamentals to justify it in the minds of ‘logical’ investors.
Of course, logic left this market scene long ago, but most still believe it to be there and that ‘logic’ would never lead to expectations of a higher market.
Most investors have been standing with their mouths open and eyes fixed like a deer in the headlights gazing at the impossibility of it all and shaking their heads as prices keep moving higher.
‘Haven’t they been reading the News?’
Not to worry though.
There’s still a chance that this market will weaken and come back down but that all depends now on what the market does next now that it has encountered this particular price level on Friday’s close.
As the chart I’ve provided here shows with the blue circled price candle; we’re now at an important price point for this important market indicator.
Should prices break upwards and maintain that upwards bias during the day Monday in the US Market hours, then, we’re very likely to see the beginnings of a very strong price campaign upwards in price.
Forget the news. It’s irrelevant in these market conditions. We’re reading the signs of the market itself here and news is a lagging indicator at best in this market.
As mentioned earlier, if prices can’t break out above Friday’s high, then, a new price slide will emerge.
The downside is not the way to bet this time though, and, this is a lower-risk point from which to stake one’s price direction preference. – George