SPX Resistance May Prompt A Massive Short Squeeze

April 12, 2018

Our analysis continues today with this research of a potential Short Squeeze in the SPX and other broader markets.  As you are probably well aware, we have been nailing the markets with our detailed analysis for quite a while.  Our Advanced Analytical tools have called nearly every move.  Nearly two weeks ago we called a massive market bottom to form in the US markets – well before just about anyone else even saw a bottom formation. In fact, we have already banked 10% profit on the first half of our best-cherry-picked setup for subscribers and it’s continuing to rally more.

Today, we are calling the potential for a massive upside breakout move on what we believe is a massive Short Squeeze position just above resistance in the SPX.  Take a look at these charts.

This SPY chart showing our Advanced Adaptive Dynamic Learning Cycles and the Stage 1 basing pattern that we referenced yesterday is still very valid.  This resistance channel, near the top of the yellow rectangle, is very clear and we can see prices are tightening near the top of this channel.  Our ADLC cycle modeling system is showing a very clear upside breakout – the massive Short Squeeze move.

This SPX chart shows a similar setup with a resistance channel near 2675 and a very clear upside potential to near 2800 or higher.  What is interesting about this chart is that the Standard Deviation channels show this move would actually be considered a “reversion trade” – back to within normal pricing channels.  This means that we could see a much broader move higher with this upside potential – possibly well above 2850.

This final chart is a 240-minute SPX chart that helps to better understand and see the resistance channel that we expect to be broken today or tomorrow.  We believe this downside resistance has setup a massive Short Squeeze position that coincides with our ADL and ADLC predictive analysis technology to indicate that we should see a massive upside price move in the immediate future.  As traders, this means we have some real profit potential over the next few weeks with this move.

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Chris Vermeulen

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several financial hubs like MoneyShow.com.

 

Gold was first discovered in U.S. at the Reed farm in North Carolina in 1799, a 17-pound nugget.