When it comes to market behaviour, I hope you’re noticing we’re having a superb run with our market commentaries for the broad indices and individual stocks.
If you learn my methods and use my tools, you’ll be able to do exactly the same.
Which, in turn, means you’ll avoid all the drama and time-wasting that is so prevalent elsewhere. Just focus on our unique ability to interpret probable market direction and use our scarce information (OVI strategies) for stock selection.
If you focus on OVI consolidations and sideways movements around Key Levels, you’ll be miles ahead of 90% of everyone else out there, and you’ll be spending just a fraction of the time they do.
Today, I’m focusing on a number of setups that have done that recently and have paid off big time, and some new ones that are forming the setup right now.
Exactly as expected, the S&P paused (just for a few days this time) and then dropped below the June lows. Last week I said:
“So, now the S&P 500 has broken down through 3768 (374 for the SPY), the odds of violating the June lows have increased dramatically. This coming week I expect a slowdown in the fall, and even a pause or retracement.”
Both the pause and the drop below 374 happened. We only got four days of pause, but it was a pause nevertheless!
From here the SPY’s next big support levels down are 350, 340 and 320…
350 is highly likely to be hit and we’ll see how the behaviour looks at that point. There’s no real point in looking too far ahead, and we could still retrace before then.
The Main Indices
Last week I mentioned we were likely to also pause for a few days. That lasted just four days!
Again, this week, we’re even more oversold, therefore the likelihood of another pause or retracement to catch breath is high.
- Longer Term Market Timer (OVIsi): Red, and likely to stay red for this coming week.
- Medium Term Swing Timer: Negative (oversold)
- SPY OVI: Negative
Pretty much the same as last week. The interpretation of this is that we’re even more likely to pause for breath in the next few days than we were this time last week. However, as per the last two weeks, the medium-term outlook is still bearish.
Fast Filters Stock Selection
Some further good bearish moves from my watchlist last week though I didn’t make a shortlist. This week I do have a list for you to monitor closely. Watch the video for my commentary.
ABNB ADM AFL APA ARKK BILL BSX CAT CDAY CIVI DE DLO EPAM KEYS KGC MLCO MOS MPC NET OVV PANW PAYC PDD PLSE PYPL SBUX SGEN SRPT SYF SYK TT VICI ZBH ZI
You can check out my full weekly review by clicking the below video…