Bears are Probably Exhausted

The selling of US stocks on 08/22/22 was powerful and relentless. The stock bears at the end of the session were probably exhausted.
Note on the comparison chart the NYSE cumulative Tick - symbol TICK. On 08/16/22 the SPX ended the session near the low of the day. The TICK reading that day was -816. On 08/26/22 with the SPX lower, and also endeing the session near the low of the day, the TICK reading was only -274, a significant bullish divergence.

The SPX 08/26/22 session - on a one-minute time scale had a low TICK reading of -1126, an even larger bullish divergence!

The SPX low on 08/26/22 was just below a Fibonacci .382 retracement of the 06/17/22 to 08/16/22 rally.
Even more amazing there's a nearly perfect parallel trend channel of the 06/17/22 to 08/16/22 rally. The SPX hit the lower trendline.

A multi-day rally could begin on 08/29/22.
The time zone for a significant top had been 08/31/22 to 09/01/22.
The sharp drop on 08/26/22 makes this time target less likely.

If a multi- day rallly develops the peak may come on 09/06/22. More on this later if a rally develops.

Mark

Commentaire:

Error on original text. The first sentence should be (The selling of US stocks on 08/26/22) not 08/22/22.

Mark