Respect my comrade stock trading fighters. We might be at the dawn of another major bull run.

Pardon?

How can that be with so many Americans being jobless, banks being shut down, and home building taking a double douse to the downside?

Good question. It does appear ridiculous if you are a one-dimensional organism existing in the present.

But you are better than that. You were bestowed the capacity to picture yourself stock trading in the future. That higher level of thinking is something that makes you different from other beasts and micro-organisms that can merely reason in the here and now. While I acknowledge it’s not as fantastic as Torchwood time travel, it can make you a great deal of cash.

One of the most tricky lessons for amateur stock traders to take hold of is that the stock market is the future of the economic cycle anywhere from 3 to 9 months. In other words, all the price action taking place on the stock market today is a lay a wager on the place we imagine the economy will be 9 months from now. The stock market is yelling at us that in 9 months from the present, the unemployment rate will be lower, banks will no longer be failing, and housing construction will go back up. The earnings season that just ended verified that with 69% of all corporations posting earnings increases YOY.

Last Saturday I talked regarding how, with the downtrend channel breakout, we don’t know what new channel or formation will appear because we don’t have enough data so far. At this time with 1 week more of chart data, and zooming out on the stock chart to look at the bigger chart pattern, a model springs forth.

The S&P 500 has finished a Bullish Flag breakout.

Now short sellers and gold bugs will disagree with the chart pattern and say that insufficient volume is present for this to be a legitimate breakout but that is just not accurate. Provided you go back and examine the previous Bullish Flag breakout we had on the S&P 500, you will witness that the volume that has accompanied this breakout is over 23% greater!

The Bullish Flag was a perfect 38.2% Fibonacci retracement of the bull run that started in March of 2009. A 38.2% retracement is a typical retracement for a uptrend.

I am upgrading the Dow, Nasdaq, and S&P 500 to that of uptrend.

Free technical analysis to help you establish the trend of the Dow, Nasdaq, and S&P 500. Go to s & p trend This article, S & P Trend Up On Good Earnings Season is released under a creative commons attribution licence.

My pal and stock analyst with Market Club, Adam, will share with you his analysis of the S&P 500 chart.

You already saw my analysis of the S&P 500 stock chart and forecast for July hence why am I showing you an additional analysis video on the S&P 500 chart?

I am of the belief that you can’t watch enough technical analysis videos. Everybody has their individual technique and approach when reading charts of stocks and so aim to look at as many technical analysis vids as you can. One market analyst could concentrate on something that another technical analyst only briefly talks about.

Take notes of the familiar threads or focal points you see and hear mentioned in various stock analysis vids. You will see that when 2 or 3 separate stock analysts point out the same thing in a chart, it’s a great idea for you to keep your eye on that distinct chart pattern or price level.

Provided you are a stock analyst yourself, and I hope you are as my goal is to instruct you as much as I can on how to become one, then watching technical analysis vids from separate stock analysts will help you in your own stock trading and in creating your unique content for your blog, video, or just to chat about with folks.

In this episode, Adam takes a quick look at the S&P 500. He draws three moving average lines: the 50, 100, and 200. Adam did this video on June 30th and he talks about the Burial Cross that all technicians are keeping their eyes on: the 50 day moving average breaking below the 200 day moving average. Seeing as this video was created on June 30th, we have had a Burial Cross since which means now is a terrific time to short this market.

The Trade Triangle tally on the S&P 500 is -90 which therefore means a powerful downtrend.

Provided we do a Fibonacci Retracement of the bull run that started in March of 2009, then a 38.2% retracement is at 1011, a 50% retracement is at 947, and a 61.8% retracement is at 883. Those are our 3 support levels on the way down. Adam’s view is that we are headed to the 50% to 61.8% retracement area between 947 and 883. Provided Adam is correct, we both stand to make a lot of money on the short sell side. Bear in mind also that 70% of all Fibonacci Retracements fall between a 50% and 61.8% retracement area.

To see the video I talk about above go to Mind Blowing Stock Chart Pattern