A Bear Market Warning in late May is quickly cancelled as the market rapidly recovers with a Buy Signal on 04 June seeing new all time highs before backing off at the echo high on 24 June.
Some rapid selling from the high finds support around 2915 and subsequent recovery triggers a new Buy Signal on Friday 28 June.
You can't make this stuff up.
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As we can see in the chart below with the T volume oscillator*, the 04 June recovery was accompanied by a rapid rise in the T volume oscillator up through the declining cash build-up line and this in turn describes a new T structure, activating projections from the previous highs in price and/or oscillator.
* The T volume oscillator is an indication of Buying Power within the market as a whole
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Zooming out to the weekly chart below.
Selling in May from the previous high, presumably in response to the potential of a double top, found support at the 55 week exponential moving average, a longer term pivot, and the market is now back at the previous resistance, with trend line resistance above around 3030. The rapid recovery from the May low suggests that the Large T structure centered at the December low is still active and drawing power from the declines throughout 2018. The full scale of this structure points to highs in October and November but with the potential for many bumps along the way.
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As we can see in the monthly chart the rising trend line from the 2000 high continues to be very strong resistance, but as we can see from the lower parallel trend line from the 2007 high, if this level is penetrated as the lower one was in early 2017, it could unlock significant gains.
The 10 month exponential moving average continues to be a good indicator of strength, and weakness below would be another Bear Market warning.
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2019 continues to bring some fast and furious action in the market with a range that continues to be expansive. We can only assume that this will continue. This is a Brave New World.
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Regardless of whether the market can continue higher or whether deeper lows are ahead of us, the simplicity of the proprietary price based S/T Signalling System continues to keep us on the correct side of the market, with price back above Buy Signal levels and close to all time highs.
If you would like to learn more about using the S/T Signalling System please get in touch.
Fair warning: Subscription fees have not been increased since 2017 but will be increased in August 2019. I would therefore like to encourage those considering membership to do so sooner than later.
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Be prepared for whatever is coming next, and trade with confidence:
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Disclaimer: This is the diary of a personal trading system, its methodology and the signals that it is producing. You are welcome to follow along but please understand that the information presented here is for educational purposes only. No recommendations are being made to buy, or sell stocks, options or futures contracts. Please consult your own financial advisor before making any investment decisions.
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