📈 The ONLY Chart That Matters

23 Oca 2023

🙅‍♂️ Forget all the endless talk and debate about recession, interest rates and war. IMO, there is only one thing that equity Investors need to know.

This is the MONTHLY chart of the S&P500 equity index. The chart tells a very clear and simple story.

For the market to re-establish the long-term Bullish narrative all it needs to do is CLOSE ABOVE the HIGH of the lowest bearish (RED) candle on a monthly basis as illustrated. A reversal above this candle will indicate (with a very high probability) that the Bear move is over. The high sits at 411.73 on the SPY (S&P500 equity index ETF).

☝️ Until the price does this, the Bear market will linger on.

❌ This view becomes invalid if we see a bearish (RED) monthly bar CLOSE BELOW the October LOW. If this occurs, Bulls will need to repeat the above process but for the HIGH of the new bearish candle.

Is it that simple? Yes it is.

MrStocky
The Professional Loss Maker