Full Moon as New Moon often brings energy to stock markets. As the chart shows that more times one or two days before and after Full moon we see sell-off and then rally on stock markets while sometimes it's inversed: markets rally first and then sell off. What has this month's Full Moon been doing then?
Full Moon for January occurs on Sunday, Jan. 20 and we have seen a little stronger rally on last Thursday and Friday. Today is a holiday and market is closed and we might see last week's rally continue in one or two days of this week forming a short term top followed by some down days.
Trading cannot be solely based on Moon Phases, but they do offer some clue. Right now SPX has retraced about 55% of drop down from its historical high to the low around last Christmas (61.8% retracement 2712.38), closed above its 50-day MA (not show on chart) for two days at 2670.71 on Friday, and got near to its 100-day MA (2732) and 200-day MA (2741). The down trendline point for tomorrow is around 2695. Let's see how the market will react to these resistance levels next two days.
By the way, there is a cross over of two trendlines on the daily chart. Sometimes two trendlines cross over may correlate a turning point date. It's Tuesday and Wednesday and let's also see what would happen then.
"Trade what you see, not what you think," this is what I learn from a professional trader and the market itself. So far the indicators and price on SPX daily chart are very bullish. I have to wait until there is a sell signal before actually going short.
Full Moon for January occurs on Sunday, Jan. 20 and we have seen a little stronger rally on last Thursday and Friday. Today is a holiday and market is closed and we might see last week's rally continue in one or two days of this week forming a short term top followed by some down days.
Trading cannot be solely based on Moon Phases, but they do offer some clue. Right now SPX has retraced about 55% of drop down from its historical high to the low around last Christmas (61.8% retracement 2712.38), closed above its 50-day MA (not show on chart) for two days at 2670.71 on Friday, and got near to its 100-day MA (2732) and 200-day MA (2741). The down trendline point for tomorrow is around 2695. Let's see how the market will react to these resistance levels next two days.
By the way, there is a cross over of two trendlines on the daily chart. Sometimes two trendlines cross over may correlate a turning point date. It's Tuesday and Wednesday and let's also see what would happen then.
"Trade what you see, not what you think," this is what I learn from a professional trader and the market itself. So far the indicators and price on SPX daily chart are very bullish. I have to wait until there is a sell signal before actually going short.