The Most Hated Pattern By Bulls Forms On S&P 500

My buddy and stock forecaster with Market Club, Adam, will share with you his reading of the S&P 500 stock chart.

You previously saw my reading of the S&P 500 stock chart and prediction for July hence why am I presenting to you an additional analysis video on the S&P 500 stock chart?

I'm of the belief that you can't check out enough technical analysis videos. Each person has their own method and approach when reading charts of stocks therefore try and see as many technical analysis videos as possible. One analyst could concentrate on something that another stock analyst only briefly mentions.

Make note of the general threads or main points you see and hear talked about in various technical analysis vids. You will see that when 2 or 3 distinct stock analysts bring up the similar thing in a chart, it is a good idea for you to keep your eye on that precise pattern or price level.

Provided you are a stock analyst yourself, and I hope you are as my goal is to teach you as much as possible on how to develop into one, then watching technical analysis vids from several market analysts will help you in your own trading and in creating your unique content for your website, video, or just to converse about with family and friends.

In this episode, Adam takes a quick look at the S&P 500. He plots three moving average lines: the 50, 100, and 200. Adam did this video on June 30th and he talks about the Burial Cross that all technicians are keeping their eyes on: the 50 day moving average breaking below the 200 day moving average. Because this video was prepared on June 30th, we have had a Burial Cross since which implies now is a fantastic moment to short this market.

The Trade Triangle grade on the S&P 500 is -90 which means a good downtrend.

If we do a Fibonacci Retracement of the rally that began in March of 2009, then a 38.2% retracement is at 1011, a 50% retracement is at 947, and a 61.8% retracement is at 883. Those are our 3 support levels on the way downward. Adam's sentiment is that we are headed to the 50% to 61.8% retracement area between 947 and 883. If Adam is correct, we stand to make a lot of money on the short side. Keep in mind as well that 70% of all Fibonacci Retracements fall between a 50% and 61.8% retracement area.