09/07/2020 More analysis from Wayne!

Good Evening,

From a momentum perspective,  last weeks trading was just profit taking and panic selling induced by computer algorithms so they can position themselves for the next leg of upside that will surely come.  The economy is still in recovery mode. Granted, pullbacks are never fun, but they’re quite common. And typically, quite healthy.
 If you click on the charts they will become larger.

Above is the Monthly S&P500 index chart.


Above is S&P500 daily chart: 

The resonance from both DMI & MTM was good signal. Also, both DMI & MTM are still positive now.


Above is S&P500 60 minutes chart:
Both KD and MACD are looking for golden cross and continue up.
It is possible to build W-shape bottom during consolidation.


Above is the Monthly NASDAQ Index chart.


Above is the weekly NASDAQ Index chart.


Above is the Daily Nasdaq Index chart.

Above is the hourly Nasdaq Index Chart
Generally, we have a drop in September. However, it has low chance of being a big drop this year because we already had big downfall in March.
Next week, the indices should have a high probability of moving higher because this profit taking was mainly in the Tech sector (NASDAQ gained too much) and didn’t effect traditional industries by causing them to drop much such as the Russell 2000.  As long as big techs like AAPL and MSFT stop dropping and then reverse for another leg up, the NASDAQ index will not fall easily.
There is the chance the selling isn’t over.   However, after similar moves in June  the indices eventually continued to rally and I believe they will do so this time as well!!

May God Bless,

Wayne

 

 

 

 



Written By

Scott Grimes

  • 01/19/26

    Good Afternoon, I’m doing this a little early this week as I have a broken water line to attend to in the morning. The big issues this week are President Trumps bid to buy Greenland, Threatened Tariffs on European Nations if they don’t back the sale of Greenland to the US, continued sector rotation out…

  • 01/12/26

    Good Morning, I woke up this morning and looked  at the notifications on my phone and I was like what? A criminal investigation of Jerome Powell? What kind of fake Facebook post is that?? Then I saw a thing or two from a couple of the major networks and I immediately realized that this might…

  • 01/05/26

    Good Morning, Lets roll!! It’s a new year. We have a new and perfected system. I feel like we’re ready for anything the market can throw at us. Does that mean I think this is going to be the best year ever? No, not necessarily. I think it’s going to have it’s challenges and I…