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Tuesday, February 2, 2016

S&P500, CRAZY MARKET, NOT SO CRAZY FOR US...


After the strong drop of January, let me share with you what we said in our 
Weekly Report

On the 16th of January I sent this study to the subscribers:


  • The S&P500 did the highest High at 2133 points, in May 2015. 2133x0.875=1866, the S&P500 did a Low on Friday at 1858, only 8 points off, and from this level we have seen a bounce. Why 0.875? Because this is an important geometry, a natural division. 1/8=0.125 this is an important number. Seven times 0.125 is 0.875. It is like when we find the 50% of retracement, it is ½. Here I’m using 1/8, a value in harmony.

  • Do you remember when I gave you the most important support area at 1850-1882 Index Points? The S&P500 did a Low on Friday exactly inside this area, you know these values I use are not random, it has a strong meaning. It worked perfectly in August-September 2015, let’s hope it works now as well.

  • Opening my Market Analyst 8 Software, I saw the Low of Friday exactly at the Andrew’s Pitchfork line. This tool is there since December. If you look at the chart I sent you in the Weekly Report number 157, in December, you will see it with your eyes, I didn’t touch it, I didn’t adapt it to the Market. In the chart above you see the same tool, and the S&P500 just touched it. This is a very powerful tool, let’s hope it will this time as well.

  • Now we get deep. The last important down swing started on the 3rd of November 2015 at 2116 points, and the Low of Friday is at 1858:
2116-1858=258 (square of 16 is 256, interesting…)

The previous drop from May 2015 to August 2015 is 266 points:
            2133-1867=266

Since the last yearly uptrend started, in 2009, we have seen only one very big drop, in 2011; that movement started in July, the S&P500 did a High at 1356, and a Low in August at 1101:
            1356-1101=255
            In October we see a lower level, just one day under the August Low, in this case at 1075:
            1356-1075=281

In 2007 we see a High in December at 1523 and a sharp decline started, with a Low in January at 1274 and then in March at 1257:
            1523-1274=249
            1529-1257=266

The biggest drop, in terms of points, of the S&P500 before the year 2000 is in 1998, with a High at 1190 in July and a Low in September at 940 and in October at 923:
            1190-940=250
            1190-923=267

You see the numbers? 258-266-255-281-249-266-250-267, they were often movements where the Market did a very important change in trend (have you read the original courses of Gann? There are many pages where he notes the number of points or dollars of every swing, quite boring actually, I know, but still…). And often we can see also a usual pattern: the movement last for 2 months, no more than that, and often we see a double Low around the same level 1 or 2 months later. Every movement bigger than this range (250-280) in the last 20 years was the beginning of a new real downtrend. The biggest crashes without beginning a new downtrend have always been between these numbers. Over these numbers something even worst was coming.


CONCLUSION

How do you think we used our study? Obviously buying in area 1850 where we had the signal to be LONG above it! On the 20th of January we have seen a scaring movement under 1850 points, but it was only an intraday movement, not even closing under it, that was the strong signal for us to buy. Look at the Market right now: 


Our forecast and study read the Market in a great way, and we have been able to take advantage of it.
Yesterday we did another great move: before the opening we said to use a take profit at 1939 Points (March Futures Contract), and the High of the day has been 1940 Points. The Futures are now at 1897 Points.

Everything documented, everything planned. This is what you get and the opportunity we offer with our Daily and Weekly Report.

Is this study going to kee the Market up or is the bounce already finished? Which is the most favourite cycle, the most favourite next trend? I think we do have the reply!

 
You can read the previous Newsletters following this link:


Best Regards,
Daniele Prandelli
I Am in Wall Street Ltd


e-mail: info@iaminwallstreet.com
Skype: I Am in Wall Street
http://www.iaminwallstreet.com
High Probaility Trading Techniques - S&P500, Crude Oil, Gold, Corn, Soybeans, Forex, Stocks, Silver, Live Cattle and S&P/ASX200.


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