SPX | Trendline violation

3 thg 10, 2022

SPX has clearly violated a trend line of this Renko chart.
After a false-breakout of the channel, now we progress further downwards.
This chart may suggest that even though we have had consistent growth for the last years, every time we cover less and less ground upwards. The next leg up, may lead us to the bottom of the channel and a rejection. Only then we can understand some further stuff and see if this chart made sense in the first place. Maybe the meaning of this chart is nonexistent. Do however take a look at the other main indices.

DJI is performing better than the other indices this year.


NDX
I drew a shorter trendline, it made the most sense to do so.


SPX/PPIACO
We are just a 13.5% drop to get to the 2000 peak.



NDX/PPIACO


DJI/PPIACO
I did an automatic regression trend on it to make it more "official" looking. Notice that the 2008 bottom is an outlier in the trend.
In the SPX/PPIACO and NDX/PPIACO charts, I drew some trends that looked good to me at the time. Price seemed to get interested in these trends.


I just added a regression on NDX/PPIACO
Trust me, at the time I drew the trendlines, I drew them in a way that made sense to the price. And as you see the regression paints the same picture.


PS. Maybe we will enter the trend again sometime in the future. We probably will. As for now, he may have more pain ahead of us.

Tread lightly, for this is hallowed ground.
Father Grigori

3 thg 10, 2022

Ghi chú

The regression channel I use has a deviation setting of :
Upper Deviation = 1.618
Lower Deviation = -1.618
I like some gold(en ratio) in my charts.