Deja Vu

csw2002

During the overnight action on 25th to 26th of May, Asian markets tanked and drove SPX to as low as 875. However, as soon as European market opened, SPX promptly reversed course and by the end of the 26th of May, Dow had 300 point rally and SPX put on 30 points. That day marked the start of a series of rallies that broke out from the range between 875 and 933 that held SPX in check betweeen Apr and May.

During the overnight action on 12th and 13th of July, Asian market tanked and that drove SPX to as low as 866. Again, the market reversed course as soon as European market opened. SPX closed near 900. Is SPX destined to break out from 933 again?

Some EW types I am following are predicting that the market will rally all the way back to 955, and slightly exceeds it before starting another bear leg down. Will see whether it pans out.

小亥

Timing is quite different, OE, month end, ER, volume...

csw2002

It's more alike than it appears. Remember that massive push on 29th of May? We have just had it over the last 15 mins.

happywacom

don't scare me, i am a bear

csw2002

4# happywacom


Today's price actions are looking like May 26 and its subsequent days even more. The pump in the after-hour market on 29th May has now been replicated today during the after hour actions. While the excuses are different (quant short squeese vs Intel ER) and the absolute price levels are different, the underlying price actions look to be tracking closely. It's looking really ominous for the bears.