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Consolidation with Cup and Handle Patterns


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#1 redfoliage2

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Posted 18 June 2020 - 02:37 PM

US stock market has spent about two weeks working on consolidation forming a cup-and-handle pattern on the hourly charts of QQQ, NAZ, SPX.  Next,  I'd not be surprised to see a big move-up from the handle .............


Edited by redfoliage2, 18 June 2020 - 02:39 PM.


#2 redfoliage2

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Posted 18 June 2020 - 02:58 PM

It may be tomorrow or next week ............



#3 redfoliage2

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Posted 18 June 2020 - 03:56 PM

SPX options max pain now at 3150 after the two week consolidation .......................


Edited by redfoliage2, 18 June 2020 - 03:57 PM.


#4 redfoliage2

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Posted 18 June 2020 - 05:44 PM

https://www.reuters....n-idUSKBN23P3FI

good news always comes at the right time :)

Edited by redfoliage2, 18 June 2020 - 05:47 PM.


#5 12SPX

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Posted 19 June 2020 - 07:21 AM

Markets not up because of that news overnight, its because of expiration and the 18 billion amount of POMO from the Fed lol!  I am surprised were up as this is likely going to indicate a higher percentage that there will be a down expiration cycle for July!  I'll know more after the close!



#6 K Wave

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Posted 19 June 2020 - 07:35 AM

Looks like it may be today if this apparent gap up holds...

Should it hold, this should be the beginning of POR...once it takes out 27300 area, then should accelerate upside...

 

If this were to gap up and reverse back down, then that would likely be a swing sell. Important action here today.

 

Here is Dow hourly. An upside gap that sticks turns the hourly back into full on bull mode, as the 200 would likely cross up over the 900 relatively soon.

The laws of physics say that you cannot have full on bull mode on a time frame until 200 is crossed up over the 900, and both are rising.

A powerful surge starting today would soon have Dow hourly in that configuration.

 

djhour.png

 

And here is Daily showing how very important the 27300 area is...note also how Dow Daily never even made it to a full bear configuration with 200 under the 900...not even close. This looks more like a massive shakeout that was quickly recovered at this point.

 

Important to note that thus far Dow has only managed to back test the 200 at this point, so if this gap up does not hold, then there is still a possibility of a sharp break down from here...that could eventually lead to an actual bear market configuration. But if we close strongly above the 200, then the 2nd stage thrusters may be about to light up, and if 27300 gets taken out, bears can fugeddaboutit

 

DJId.png

 

 

And here is the futures hourly...a gap up and hold today would re-invogorate the already ongoing bull market in this time frame, after a picture perfect back test of the 900.

 

ym.png


Edited by K Wave, 19 June 2020 - 07:40 AM.

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#7 redfoliage2

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Posted 19 June 2020 - 07:45 AM

Expect VIX to go down below 31 by the end of the day, and then the recent correction/consolidation is over, as the mission of this two week long correction/consolidation engineered for the quadruple witching is accomplished.

BTW, the stock market is not the economy, it's the hope of the economy and the country, and a place to park the money when the rate is so low.  So the stock market must keep going higher as long as the economy is terrible ........ .................


Edited by redfoliage2, 19 June 2020 - 07:47 AM.


#8 gismeu

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Posted 19 June 2020 - 08:28 AM

Markets not up because of that news overnight, its because of expiration and the 18 billion amount of POMO from the Fed lol!  I am surprised were up as this is likely going to indicate a higher percentage that there will be a down expiration cycle for July!  I'll know more after the close!

Good morning 12SPX,

 

could you please elaborate on how you read these things to come up with a down July expiration cycle?

 

Thanks, gis


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#9 K Wave

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Posted 19 June 2020 - 08:36 AM

Watch Trannies this AM.

 

IF...a reversal were to happen, there is where it would most likely manifest first.

 

An hourly close over 9350 required before bulls are really safe.


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#10 K Wave

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Posted 19 June 2020 - 08:42 AM

26400 on Dow looks real important today....

 

Bulls not out of the chute until that is taken out....


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