Last day of the 2022 year. It was a horrible year. But I must say, I was able to navigate it relatively well. Although I decided to roll the trades and not close them for a loss, I managed to stay positive and grow the accounts. The only problem is that many of these trades are now open with a long time to expire, and it will take time to clear them and collect my premiums. But I am optimistic. I believe 2023 will be better, and the recession will not come (yet, I will protect my portfolios just in case). And when the markets start trending again, I will make more money.
The market was selling the whole day on the last trading day, but we saw a robust rally in the end, which erased all intraday losses. That is yet another day when the market rejected bears and held the support at 50% Fib. The price managed to stay above the red cloud line. It is held inside the green cloud, but the issue here is that the blue line is still deep below the red line and not much reversing, and the cloud is about to change into a red one again. We need bulls to step in and push the price up.
We are still seeing the blue line sharply below the red. And there is no sign of the blue line trend reversing. That is not a good sign. It can indicate further decline to come. We need bulls to step in, push the price higher, and reverse the blue line back up.
The good thing is that we are above the red cloud support line. If that holds, the market can be saved. The cloud is also slowly changing from green to red, and so far, in this choppy market, it has indicated a potential bottom. So let’s see how this develops.
So far, the Ichimoku chart resembles the price action from September 2022 (see the blue boxes: blue crossing below red, cloud changing from red to green, etc.) and what followed after that was not good.
The chart above shows how the market continued declining the whole day, but in the last hour, it rallied and erased all losses (well, almost all of them). Yet, it defied my forecast, so the last two days didn’t work. The market did the exact opposite. What is going to happen next? It is difficult to say right now as the market is like a bouncing boat on a stormy sea. We have no direction and too many emotions out there. We need the sentiment to calm down first. In a market like this, the best approach is to sit tight and wait for some clue about where this thing wants to go.
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