To The Moon

The bearish reversal signals highlighted in the latest Weekly Compass edition proved accurate, with the market experiencing a decline consistent with an overextension and breaching the central S/R levels published previously.

The good news for bulls is that a rare bullish signal was triggered on Tuesday. In the 70 years prior, there have been 25 similar occurrences, and in 92% of those cases, the S&P 500 was in the green zone with a single-digit percentage gain above the bullish breadth thrust after two and three months. Additionally, the S&P 500 was two percentage digits above the signal after six and twelve months in 96% of those cases.

However, the upward path is not a straight line. These bullish signals often occur alongside overbought conditions, followed by a pullback, as discussed in Wednesday's educational content about breadth thrusts, with over 10 examples provided.

That said, the decline is not over, and in advance to the Weekly Compass edition, I’m sharing some weekly charts right now $DJIA(.DJI)$ and $iShares Russell 2000 ETF(IWM)$ .

The S/R levels are very relevant for next week, since charts like $Apple(AAPL)$ and $Alphabet(GOOG)$ $Alphabet(GOOGL)$ have references for a bounce, but confirmation is needed.

I'll be watching the first weekly support level for $S&P 500(.SPX)$ and $NASDAQ 100(NDX)$ .

https://x.com/SmartReversals/status/1814430779167912195