Finspiration Special Report, New Year's Day Public Holiday - 2/1/23.
Three charts: XJO, SPX, QQQ.
I noted in my weekly report that XJO was down to the 200-Day MA and a significant support/resistance line at about 7000.
I then put on a Fibonacci grid and the current level is at 38.2% retracement - adding further information to the ones above suggesting that we will see a bounce here.
Now, SP500 - not quite as convincing as XJO - but looking OK.
Putting a Fibonacci Retracement Grid on the chart, we see that the current level is the 50% retracement level.
So that gives the SP500 a good chance of a bounce here and out of its current sideways consolidation zone.
Hi DRG,
QQQ (ETF for Nasdaq) looks promising.
It is back to support.
28/29 December formed a two candle reversal pattern known as a Kicker. A Kicker occurs when the market has a big down day followed by a big up day - and the open of the up day is equal to or higher than the open of the down day. Stephen Bigalow, something of an expert on candle-sticks, says that the Kicker pattern is the strongest of the 12 major candlestick patterns.
This is what Bigalow says about the Kicker:
"What is the strongest of the 12 major candlestick patterns, or rather the entire list of candlestick signals? The Kicker signal. This signal demonstrates a severe change an investor sentiment. In fact, many investors suggest that if you see this signal then you should go long or short, depending upon whether it is bullish or bearish."
If you look at the bottom panel in the chart above, you will see a histogram for volume. It shows declining volume while QQQ is declining.
The received wisdom about volume is that declining volume on a down trend is bullish.
The QQQ chart is looking bullish to me.
All of the above observations are meant to be short-term only in nature.
Stay Safe.
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