Two Major Technical Forces Are About to Collide in the S&P 500 (new video)

The S&P 500 has seen remarkable recovery from the lows that were seen earlier this year. However, all of that may come to an end as we fast approach a strategic level for this market. There are two major technical indicators that are colliding at a crucial point and time. Unless you're aware of these indicators, it could be very expensive.

In todays short video, I explain both the technical indicators we are discussing and also the important time frame that we are just about to enter.

I think you will find today's video not only interesting, but also educational.

There is no need to register for this video and of course you can watch it with my compliments. I highly recommend watching this video today, otherwise you risk missing out on what could be the move of the year.

Enjoy the video and please give us your feedback on this blog.

All the best,
Adam Hewison
Co-creator, MarketClub

12 thoughts on “Two Major Technical Forces Are About to Collide in the S&P 500 (new video)

  1. Another chart showing a resistance around 1120 is the channel surrounding the March-Septemebr move. The upper channel intersects the 1120 neighborhood, with the downtrend and the 50% retracement.

  2. Ok, it means that I'll start thinking about using puts again and, since I guess that volatility will get higher and higher, I can say that iron condors will fly again! Not to mention bear call spreads...
    Thanks for the very interesting video.
    I'll make treasure of this.
    It makes even more sense if we think that Harry S. Dent Jr. is right with the theories in his scaring book (I mean that it scared me, not that it's written in a poor way.
    Best regards
    and good trades
    Fabius -Italy

  3. Your videos are very helpful. Indian Stock Market is very much linked to what US & European market does now. So watching 50% retracement levels very closely. Thanks for the videos.

  4. I don't care whoever says what that the S&P is overextended whatever. I trust and follow the chart. I don't follow the forecast/rumors. I look at the chart and trade and making consistent money. If you follow rumour and forecast you will never enter into trade . If market goes down I will short and make money so be it.

    1. DevTrader,

      I totally agree.

      There's the market and then theres "reality". The truth is, the market is reality.

      All th best,

  5. Where are the guitars??

    You know, I would take a grain of salt on indicators, but the one to look for is probably the RSI(14) crossing below 50. Simple as it may be, that will be the week things sell off pretty abruptly.

    Still weeks away, the RSI(14) is in overbought territory and should back off, but we can be fooled.

  6. Thanks Adam.

    The strong resistance you described happens to be the max forecasted by the H&S of the weekly chart! Let's hope we get there at around 1120-25...

  7. Hi Adam. Once again thanks for your video comments. I really appreciate the technical claerity your analysis provides. I would question, however, this two techinal indices colliding as an indicator looking at $.INX (S@P500) as potential going forward, though like you I am VERY nervous that the retracement has come too far too fast, that we need some sort of technical mkt correction and so forth. The reason I think this is different is that(1) under one third of the $700-800 billion stimulous spending has been pumped into the economy. Next year, the stimulus will add more impetus to GDP etc. (2) The actual cause of the financial collapse, I think, is a one off event--that Wall Street became inebriated with its CMBS "vehicles" and that the investing community just decided to hell with them collectively, walked away and have sat on their hands and now are starting to emerge into the sunlight rested and ready to play if not completely restored. thanks

  8. Adam,

    You have been banging on abt the SnP 500 gonna come down from the time it came close to 900. Everytime the market goes higher.

    I guess if you keep saying the same thing, at some point you will end up being shown right? Will you this time?

    Time will tell.

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