Madrid

Madrid Wizard

We recently saw the AMEX:SPY index falling very fast and aggressively to the correction territory. The level found support around the 4950s. After all the events like Earnings, one day down, the other day up, and both very aggressive, plus the Fed meeting, also with a wild rollercoaster. At the end of the day the index found support above the 4950. Which is good...

Madrid Wizard

Today we woke up with a SP Futures Market down on Fed day. The previous days the market was trading in a narrow range, yesterday we saw it crashing down anticipating the Fed day today, and this morning it took another dent until the level reached what we can see in the chart, a touch over the 100 ma support. Keep in mind that after hitting the ATH recently, it...

Madrid Wizard

History repeats itself, and we should learn from it, however sometimes history is so far away that it spans generations before we're able to grasp the experience first hand. We hear about 1929, but we can't imagine what it was to survive the struggle, we hear about the pandemics during the 20's, same deal, we have heard about recessions, and those who went through...

Madrid Wizard

After three impulsive waves Bitcoin started to show signs of weakness. It already broke the main trend. The Momentum went to the negative side, it signaled the start of a negative wave. The volume imbalance is on the bear side. To go long on this one we have to first wait for it to find support, if this makes a lower low, then it is going to be game over...

Madrid Wizard

The market is showing signs of weakening. After the previous high didn't take out the highest high it made on January 22, the momentum started to weaken. The volume is going through a bearish cycle and the VIX is starting to show signs of waking up. The interest rates haven't receded and there are signs of an economy slowdown with upticks in the unemployment and...

Madrid Wizard

TSLA is at the main support channel line, and at the MA support level, it is a pivot point. The uptrend channel is still valid, but at this point there is no direction, it just came down from the downtrend leg from the 300 level until the 230 level. The volume has been weakening and at this time it's below average. Market Volatility is at 17.6, and in an uptrend...

Madrid Wizard

Currently at the 330 Support Resistance level, which is a pivot point. QQQ has been rising from the 265 Support Level, Now it is hitting a Double Top level that may send it back to probably the 290 level before it attempt to break the 330 Level again. A buying signal went off when it hit the support level at 265, it made a positive momentum divergence, confirmed...

Madrid Wizard

Currently the SP500 is doing a double top and stalling at the top of the range. In spite that the index has already broken the range to the upside, there has been no follow up. So it starts to look like a weak trend. Most probably it will attempt a sell of to gain momentum at a lower level. In the meantime this means that there could be volatility in the market....

Madrid Wizard

There's a support level around the 70's. The trend has been going down since the tightening of the economy, the increase of the interes rates and the fight against inflation. At this point the momentum has been steadily increasing and for a bit it breached the postive side. The waves habe been decreasing, which means there is less participation on the bear side...

Madrid Wizard

The prices have been bouncing within the 360-420 range, there is accumulation at the 360 level and recently at the 380 level. The distribution level was recorded close to the ATH at the 480 level. There is an increasing momentum and my estimates are that it will take a retest at the 20-50 ma ribbon. At this point it has already tried three waves to the...

Madrid Wizard

For the last few weeks, after making an inverse Head and Shoulders, the trend just faded away around the support lines of the main two ribbons. The momentum has consolidated around the Zero Line, which means there's indecision in the market, and the Trend strength is at the bottom with no indication so far of a reignition. Since the market hasn't fallen, this...

Madrid Wizard

We have seen an impressive relief rally from TSLA, this was a bullish leg, inside a bearish trend. Still juicy and very profitable. It made a recent low in the 100's level, where we saw an important volume, which can be characterized as a capitulation on the segment that went from its ATH to the 100's This volume was composed of liquidated long and covered short...

Madrid Wizard

The bitter memory from 2008 still persists in our minds, or at least in the minds of those who witnessed first hand what a Great Recession is. In 2008 many variables were set and many gears were in motion. Long story short, even though the media has attempted to call a recession, or to spread the fear of the bear among the people, which technically yes, it is a...

Madrid Wizard

SPX recently made a bottom at 3500, this was accompanied by a positive momentum divergence and a second rally. This one has been very cautious, since this didn't go all straight up, it was short from its previous high, it tested support at 3800 and continued until 4200, to fade again. The question here is, since this has already made a RBO at 4200, and it found...

Madrid Wizard

Ethereum is consolidating around the 1,200 level. This is a good sign since it tested support at the 1,100 level. It hasn't entered in a rally, except a quick 50% after it bottomed, but still under the 20 and 50 ma's. If this holds then the increasing volume can signal an accumulation that could try to break out the consolidating triangle.

Madrid Wizard

"Musk 'MAY CLOSE' the deal on Friday". I love the wording they use, MAY CLOSE. Of course he wants to close the deal so he avoids going to Court. BUT, the article has a misleading wording, just like the "letter" he filed with the SEC when he reignited the TWTR acquisition controversy, to buy but not to commit to buy TWTR. He didn't commit to anything, and here he...

Madrid Wizard

$SPY A new relief rally forming. Double bottom with positive momentum divergence and retest of the 200ma in the weekly. The close on Friday above the 200ma is a good sign. This is a bearish leg, but it could turn into another relief rally to test the resistance of the 50ma. It’s interesting to point out that the size of the bear leg was the same as that in 2020,...

Madrid Wizard

SPY is reaching a technical level where it is starting to form a positive momentum divergence. Let's remember the relief rally which took the price back to the support levels under the Moving Averages, this is usually known as a "back to normal" on an ongoing Bear Market. I don't expect this to actually go to the reach the previous high levels, I expect more of...