Yesterday I shared my weekly projection on the S&P 500 and my thoughts on how it would act in the coming day's and weeks. Today it has broken out of the downward moving trend and looks to have slowed for the time being and might be looking to pull back down towards the bottom. If this is the case and we start to see the price start to pull back wait for it to complete its downward move because it could take it all the way down to the lower trend-line. This would mirror the previous upward move as we saw it reverse off the line only to come back before heading back down.
Looking at the one hour time frame we can see the upward move turn into some sort of sideways consolidation pattern. Like I spoke about earlier, it is very likely that we could see it pull back and retest the lower support so wait for the pattern to play out during the day.
My long-term view of the S&P is that we will see resolution of this pattern to the downside and that we might not see the high we saw a couple months ago ever again or at least for a long time to come. I would be very hesitant to put long positions into the indexes but if you are looking short term it wouldn't hurt to catch some of the upside.
I would like to share one interesting piece of information I came across awhile ago while researching the S&P. First of all one of the driving forces in the markets today has been the buying and selling of the FAANG stocks by the central banks and Fed. There was a report released earlier this year showing central banks in Switzerland buying up over $80 billion worth of stocks in the US markets. Now I find issue with this as they can print as much money as they want with no limit to their presses. That means they are able to directly influence our economy and markets by however much they want. This isn't new news but it is something that I find major issue with because they can sell off as many of those 80 billion dollars worth of shares and crash our markets at any time. That is a scary thought that someone can crash our markets with a push of a button and we would be helpless to do anything.
Here is the link of the article: