SPX - 4 hours, goals met
*enlarge this chart to fully see the image
- Confirmed downside gaining momentum
- Support points are not being respected
- The dome or arch shape of a rounded top has come full circle
- Expanded Average True Ranges
What it takes for a decline to wipe-out the entire series of gains is beginning to happen much quicker these days. In just a few candles, the SPX can have the power to eliminate gains that happened within 1-3 trading sessions or even a week's worth of "Rallying"
We are just surveying the size of each of these 4 hour ranges, and it turns out they are getting comparatively taller with each passing moment. For instance, the range on this very last candle for today was 28.04, where in a quieter market stat like back in May and April the ranges were half that or even 10 to 15 points per 4 hour interval
Even the first 4 hours of trading today were wild in terms of going up and down 20.58 only to follow-thru on the downswing at a rate of 28.04
Support Points - the Logic of the Average True Range
- The Most Aggressive Buyers
- The green shaded zone which formed the very long shaped hammer between 5/1 and 5/3
Even 2700 which has been a major support point recently has already been revisted, the prior days lows are not holding up and it would take entire measured moves to their completion before the bulls begin to see solid support. Now, if the SPX moves 40-60 points minimum per day it would be logical to surmise that maybe the next bounce would happen at 2675 or even 2620.
Dome Shape vs. Arch Shape - the formation of bottoms and tops
The inverse head and shoulders was beautiful back in April and likewise the more recently printed rounding top for this months beginning. We are not half-way in terms of completing this move, and granted a bounce could happen on Thursday we still feel the losses will be consolidated before getting worse. On the other hand, after all the destruction, assets will be generally cheaper and better deals will be made.
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