Sentiment speaks: Amazon killed the market on Friday

Sentiment speaks: Amazon killed the market on Friday

Sentiment speaks: Amazon killed the market on Friday

Sentiment speaks: Amazon killed the market on Friday

Florent Molinier

It’s really entertaining to people watch. Whether I’m sitting outside in a public area and “people watching” with my wife, whether I’m watching how people react to the market in Seeking Alpha articles (which includes writers and commentators), or I see how people react even on the virtual walls of my services, people are very interesting and their emotional responses even more so.

We have had a very interesting week this past week. And he told me again that people can’t overcome their emotions, especially when it comes to the stock market. You are following so many CPI, unemployment, GDP, etc. However, that didn’t help you at all in this rally. Well, this 12% rally over the past two weeks has you lost. And, when Amazon’s earnings came out, many of you were sure that the market would go down.

However, as the market was developing a near-term structure on Wednesday and Thursday, my primary analysis of members of The Market Pinball Wizard suggested strong potential for a pullback before climbing into the 3900+ region, so this was my next move. target SPX

And, when the market plunged in the after-hours session after Amazon’s earnings announcement on Thursday, many were convinced that we were in for another major downward leg. Most were sure that Amazon would take the market down again.

However, in my examination of our members that evening, I stated the following:

We have an interesting scenario in hand. ES and SPX have slightly different models. What’s really interesting is how the market seems to fit both patterns at the same time, even though they’re different.

For example, tonight, we are back to the pivot in the ES, which is lower than the SPX, because the ES had a smaller wave 2 relative to the SPX. It is likely that we will complete this model tonight – if it has not already been completed – in ES. There is evidence that the ridge we saw earlier was wave iv of the c-wave and the lower low was wave 5 of the c-wave. If this holds true, we likely won’t see evidence of a SPX decline tomorrow.

While the technical jargon of waves may sound a bit foreign to you, pay attention to what the wave structure told me about what to expect the next day: “If this holds true, we likely won’t see evidence of a SPX decline tomorrow.

In my article last week I was not only laying out the exact support that futures should have for a move up to the 3900 + SPX target, but I was specifically saying that if we were to hold that support overnight, we would not even see evidence of that decline when the market opens the next day. And, as we now know, the market opened EXACTLY where we closed on Thursday, and continued up to our next target.

And these members’ posts summed up what many of my members said on Friday:

Well surprised, I never would have called it going up in the market this morning after yesterday’s AH action on my own.

In my first year of service, I might have been a fool to wonder if you were crazy. Those days are long gone…

While some of you may think I’m just lucky or practicing some sort of “chart magic”, I can tell you that a market call like this comes from my experience of using the Fibonacci Pinball method of Elliott Wave analysis simply to get information. market action and structure.

In fact, we had a similar scenario on the night of the 2016 presidential election. As the market was bottoming out during the night session, I pointed out to our members that we were hitting the lows at midnight so they wouldn’t be surprised if the market opened where we closed the day before, and then continued with great strength. And, if you remember, that’s exactly what happened, when we opened the next day with no evidence of the overnight decline in the cash SPX market.

While the election night market call was clearly more dramatic, the reasoning was similar to what allowed me to make the call I made on Thursday night this past week. If you want detailed Elliott Wave reasoning, I provided it in the weekend analysis I posted on The Market Pinball Wizard. But, I can assure you that it is not based on some kind of “table magic” or voodoo. On the contrary, there is a solid and fairly reliable method to our madness.

Now, let’s move on to our upcoming expectations, especially now that we have hit the target we gave last week when the market was 150 points lower. And let me tell you that the bulls are about to face a very tough test of their endurance.

I hope we can go up next week. I have to leave the specifics of the structure I’m looking at to the members of The Market Pinball Wizard, so I apologize for the lack of detail. Once I finish this build up, I hope to go back next week. Support for this pullback is in the 3785-3830SPX region. And, as long as the market respects that support and starts another impulsive rally from that support, my next top target is the 3971-4015SPX region.

However, if the market is unable to sustain this support, then it opens the door for a much deeper pullback that could lead to the 3650SPX region. And that could have a dramatic impact on how I view the market at a larger level.

Again, while I am able to provide a general guideline in my public articles, I must leave many of the details of my analysis to members of my services. So let’s see how the market fares next week, next week.

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As for upcoming presentations, I will be presenting at the MoneyShow in Orlando on October 31st and then hosting a panel discussion on November 10th with Elliottwavetrader analysts Garrett Patten and Ryan Wildy about our views on equity, gold. bond and cryptocurrency markets by 2023.

Finally, I will be traveling for the next two days, so I asked the editors to close the comment section as I will not be available to respond.

#Sentiment #speaks #Amazon #killed #market #Friday

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