To The Moon

Hello everyone! Today I want to share some technical analysis with you! 1. 4221-4241 GAP: $S&P 500(.SPX)$ (1) market has a great memory of the scar in the past, i.e., big gaps. (2) a major breakaway gap during the rally phase at 4221-4241, now brings back a lot of painful memory for the market. (3) it normally takes a couple of sessions to digest the pain. Image Nextm, Low is 4220--like I said, if SPX can turnaround at the lower edge of the formal gap (4221), then it has a chance to chop further in the zone. It did. The low is 4220, and now SPX aims at MA=200=4237 again. I think it has a chance to close above it today, waiting for $Microsoft(MSFT)$ & $Alphabet(GOOG)$ . Image Chopping, relentlessly. The purpose of the moves is to make sure the majority of traders are ill-positioned for the next major leg, either up or low. After defending 4220, SPX jumps back up both MA-200 and the Gap zone. Now, wait for the close to see the final score. Image Finally, Hanging in There: (1) yes, closed above 4237, but not convincingly--moreover, the current candle formation is a bearish pennant, waiting for a breakout to the downside. (2) now, the earnings are out, GOOG down, MSFT up, pretty much cancel each other out. (3) need other catalyst. Image 2. THE TOUCH: $NASDAQ(.IXIC)$ (1) NDQ formed a perfect-looking downward wedge--or leading diagonal, with a potential 3rd touch of lower trendline near 14280. (2) about 3.5% lower from current level--with AMZN & GOOG (12% weighting) earnings, it has the energy to do that. (3) also the MA[200] level Image Follow me to learn more about analysis!! https://twitter.com/MasterPandaWu