I've taken an interest in charting crypto over the past year. Given, what I think, is an increased correlation between crypto and main indices I thought I better take a look at some of the main players.
I was genuinely shocked to see the state of the S&P 500 on the macro chart. It looks to me like a huge blow off top, with staggering exponentional growth since the 2009 crash. The covid crash barely registers in the grand scheme. I see a clear pattern of decreasing volume. I see massive bearish divergency at the top. I see a significant bearish engulfing candle, signaling trend reversal. I see unprecidented distance between the current levels and the long term averages. Looking a bit closer on the weekly, a sharp ascending triangle has broken to the downside.
Surely this is completely unsustainable and a crash is coming sooner rather than later?
S&P has fallen under monthly 200MA and 300EMA on a number of occassions before and will do again. First target at around 2400 - 2500, second at 2150, third at 1550 (bouncing off '00 and '07 double top). Time to get in cash and be patient for the deep dip.
I was genuinely shocked to see the state of the S&P 500 on the macro chart. It looks to me like a huge blow off top, with staggering exponentional growth since the 2009 crash. The covid crash barely registers in the grand scheme. I see a clear pattern of decreasing volume. I see massive bearish divergency at the top. I see a significant bearish engulfing candle, signaling trend reversal. I see unprecidented distance between the current levels and the long term averages. Looking a bit closer on the weekly, a sharp ascending triangle has broken to the downside.
Surely this is completely unsustainable and a crash is coming sooner rather than later?
S&P has fallen under monthly 200MA and 300EMA on a number of occassions before and will do again. First target at around 2400 - 2500, second at 2150, third at 1550 (bouncing off '00 and '07 double top). Time to get in cash and be patient for the deep dip.