22 Jul 2023
Markets completing secondary wave in the ongoing bear market - Weekend Update - 22nd July 2023
Today, we shall focus on the US stock markets, time and price cycles run across all markets due to the corelative behavior providing an insight on how the next market is going to play out relative to the others, like a the next song which is going to play on the radio, most traders tuned in with the markets all across are having the same glaring feeling of an impending collapse which should now be unfolding shortly, setting up conditions for a bloody October.
Last: 4565.50 {ESU23}
Support: 4511.50, 4486.50, 4461.00, 4410.50, 4359.75, 4284.00
Resistant: 4587.50, 4609.25, 4714.50, 4761.25, 4868.75, 4929.50
Key Level: 4511.50
Bias: Potential Peak in place.
The US Markets have now reached potentially higher levels and remain at a critical juncture which should mark the peak of the secondary high in an ongoing bear market. A Break now of 4511.50 region {Emini SP Futures September 23} will provide evidence of a peak in place and a confirmation of a significant trend reversal targeting 4359.75 and 4284.00 region and potentially lower levels.
In the longer term, The SP marked a significant low at 3628 region (14 October 22), completing a bottom of the initial bear market move down from 4930.10 {wave 1} (historical high, 7th Jan 2022}, giving way to the secondary corrective rally is an ongoing bear market retracing much of the losses and now reaching maximum upside potential levels, {wave 2}, from where a larger subsequent decline will soon begin and is expected to head towards 3628 previous lows and potentially lower levels with a potential key target near around 2740 before the markets will find a bottom.
The alternative view calls for a move towards new highs, albeit this potential is unlikely and only if the market could hold on to its continued gains and take out new historical highs the bearish pattern could be resolved, however this momentum witnessed at current lofty levels are signaling overbought levels on short term and long term basis coupled with various other euphoric biases which often mark a peak in the trend and with a change reversal, this should come very surprising to all FOMO participants who have over extended their potentials.
On a price and time cycle basis this also marks a peak in the ongoing trend.
Trade According.
Daniel Mankani
