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Re: DiscoverGold post# 20967

Sunday, 04/23/2017 9:53:55 AM

Sunday, April 23, 2017 9:53:55 AM

Post# of 54865
Amateur Investors: Weekend Analysis

* April 22, 2017

So far the action, in the S&P 500, since early March looks like a consolidation pattern and not the start of a larger correction. Meanwhile the VIX still hasn't rallied back to its downward trend line which is around the 19 level. At this point, even if the VIX reaches the 19 level, the S&P 500 probably wouldn't drop much below its 100 Day Moving Average (green line) which is nearing the 2310 area.



Meanwhile, based on Wave analysis, the Dow has the clearest structure as the current pullback would be a 4th Wave. This would then be followed by one more significant move higher to complete a 5 Wave pattern from the early 2016 low. The final target price based on Fib Extensions would be around 22000 (261.8% Extension).



Finally, one thing that is a bit troubling is the 5 Day Average of the Put to Call Ratio has been dropping (points a to b) as the market has been pulling back. Normally the Put to Call Ratio would rise as the market drops and vice versa. Thus investors seem awfully confident the market is just going to head higher again. Keep in mind, during the past few years, significant rallies in the market didn't develop until the 5 Day Average of the Put to Call Ratio spiked above the 1.2 level (points c).



http://www.amateur-investors.com/AII_Weekend_AnalysisApril_22_17.htm

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Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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