The major market indexes had a major shakeout today with a greater than 5% range on the daily bar in the S&P 500 for example, as it opened sharply lower with a Stage 4 continuation breakdown attempt in the pre-market / early European session, and then continued lower in the initial 15 minutes of the US session, before a strong reversal that then continued throughout the day as people attempted to buy the dip. Which took it back into positive territory and then closed near the high of the day at +2.60%.
So it is another Spring attempt, which needs to see strong follow through in order to regain the fledgling Stage 1 structure. As if it's just a one day wonder to shake loose some of the hedges, then the Stage 4 could reassert itself strongly. So stay nimble, and take it one day at a time, as risk remains extremely high and the short-term trend remains down currently.
Another chart that I wanted to highlight is the US Dollar Index. I'm showing the UUP etf above, which made a potential Buying Climax (BC) a few weeks ago, followed by an Automatic Reaction (AR), and then today a lower high as a Secondary Test (ST) and so has potentially completed Phase A of potential developing base structure, and hence might be showing the very first signs of Stage 3 behaviour. However, there needs to be much more confirmation before it would be considered Stage 3. But the Phase A Wyckoff Events, are what I look for for early signs of a transition. However, it could also just be a re-accumulation structure, and so currently the Stage would be rated as Stage 2B-
US Stocks Watchlist – 13 October 2022
There were 31 stocks highlighted from the US stocks watchlist scans today
ALL, HBAN, IBKR, VSCO + 27 more...
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Disclaimer: For educational purpose only. Not investment advice. Seek professional advice from a financial advisor before making any investing decisions.