Possible Diamond Reversal Taking Place On SPX
There is a clear pattern of pseudo-diamond forms going back to at least the beginning of 2021. They occur at regular 30 day / 4 week intervals.
I strongly suspect there is some sort of fractal dynamic in-play.
These forms always failed because the market always rallied at the last moment and violated the form by exceeding the high at the mid-point of the diamond forms.
Subsequently, there has not been a strong violation of the trendline until now.
This has changed because the recent form has indeed violated the primary trendline.
As such this needs to be watched carefully because not only is there a trendline violation, but there is also 4/5 of the primary criteria for a diamond reversal fulfilled and, furthermore, we appear to have a flag-type formation forming on the run up to peak #5.
This needs watching carefully.
4450 must be broken to the upside in order to violate this form.
I believe that the main support is now an angular trendline of support going back to 2020.
This must be broken through violation of the level at 4310 in order for the diamond reversal to successfully conclude.
The main entry for this will occur around the 4450 level.
I strongly suspect there is some sort of fractal dynamic in-play.
These forms always failed because the market always rallied at the last moment and violated the form by exceeding the high at the mid-point of the diamond forms.
Subsequently, there has not been a strong violation of the trendline until now.
This has changed because the recent form has indeed violated the primary trendline.
As such this needs to be watched carefully because not only is there a trendline violation, but there is also 4/5 of the primary criteria for a diamond reversal fulfilled and, furthermore, we appear to have a flag-type formation forming on the run up to peak #5.
This needs watching carefully.
4450 must be broken to the upside in order to violate this form.
I believe that the main support is now an angular trendline of support going back to 2020.
This must be broken through violation of the level at 4310 in order for the diamond reversal to successfully conclude.
The main entry for this will occur around the 4450 level.
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If this is a go-er then we have ourselves a bear flag leading up to resistance
