{"id":173935,"date":"2020-07-20T14:18:17","date_gmt":"2020-07-20T18:18:17","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=173935"},"modified":"2020-07-20T14:18:17","modified_gmt":"2020-07-20T18:18:17","slug":"us-stock-market-stalls-near-a-double-peak","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/07\/us-stock-market-stalls-near-a-double-peak\/","title":{"rendered":"US Stock Market Stalls Near A Double Peak"},"content":{"rendered":"
July 20, 2020<\/div>
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By TheTechnicalTraders<\/u><\/a>\u00a0<\/strong><\/p>\n

– The US stock market stalled early this week as earnings started to hit.\u00a0 A number of news and other items are pending with earnings just starting to roll in.\u00a0 There have been some big numbers posted from JP Morgan and Goldman Sachs.\u00a0\u00a0 Yet, the markets have reacted rather muted to these blowout revenues.<\/p>\n

We believe this is a technical \u201cDouble Top\u201d set up in the making.\u00a0 The NASDAQ has been much weaker than the S&P and the Dow Industrials.\u00a0 We believe the US stock market is reacting to the reality of earnings and forward guidance after the recent rally in price levels over the past 9+ weeks.\u00a0 If we are correct and this Double-Top pushes price levels lower, then this technical resistance level may become the price ceiling headed into Q3 and Q4 2020.<\/p>\n

Before you continue, be sure to\u00a0opt-in to our free market trend signals<\/strong><\/a>\u00a0<\/em>
\nbefore closing this page, so you don\u2019t miss our next special report!<\/em><\/p>\n

E-mini S&P 500, Weekly chart<\/h3>\n

his ES, E-mini S&P, Weekly chart highlights the technical Double Top pattern that we believe will become a major price ceiling as earnings and other economic data continues to be released.\u00a0 This is a perfect example of how technical patterns align with fundamental data to present very clear trading signals.\u00a0 If the resistance near 3220 holds as we expect, the ES price level should begin to move lower attempting to target the 3000 level.<\/p>\n

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SPY ETF Weekly Chart<\/h3>\n

This SPY ETF Weekly chart highlights the similar Double-Top pattern that has setup with further indicates strong resistance near $322 \u2013 which aligns with the original Fibonacci Bearish Trigger Level from the February peak levels (the solid RED line).\u00a0 The Double-Top setup near the Fibonacci Bearish Trigger level suggests a very strong resistance level that exists near $322.\u00a0 It is our opinion that this Double-Top setup near strong resistance will likely push the SPY into a downside price trend targeting $300 or lower.<\/p>

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Transportation Index Weekly Chart<\/h3>\n

This Transportation Index Weekly chart highlights a different type of resistance price pattern \u2013 a downward sloping price channel peak.\u00a0 Unlike a Double-Top pattern, when price creates unique high price peaks that align into a price channel, we can attempt to use this channel as a price resistance channel going forward.\u00a0 In this case, the peak price level in February 2020 and the peak price level in June 2020 creates a very clear downward price channel that matches the current price peak perfectly.<\/p>\n

It is our opinion that this peak level will act as strong price resistance in the Transportation Index and should prompt a downside price trend targeting $8900 to $9000 or lower.<\/p>\n

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As global traders and investors continue to trade the forward expectations and earnings data that will last another 4+ weeks, we have to be prepared, as skilled technical traders, to trade any decent price moves that initiate as a result of price reacting to this technical resistance and moving lower.\u00a0 As technical traders, we will wait for confirmation of a trading signal before jumping into a trade from these levels.\u00a0 This makes a big difference in terms of accuracy.\u00a0 Once we receive a confirmation of the technical pattern, we believe the trade has a much higher accuracy ratio.<\/p>\n

In closing, be prepared for bigger downside price trends as this technical resistance works through the markets.\u00a0After the peak in June 2020 and the setup of this Double-Top pattern, our researcher team believes a downside price move from current levels is highly likely.<\/p>\n

Get our\u00a0Active ETF Swing Trade Signals<\/strong><\/a>\u00a0or if you have any type of retirement account and are looking for signals when to own equities, bonds, or cash, be sure to become a member of my\u00a0Passive Long-Term ETF Investing Signals<\/a><\/strong>\u00a0which we are about to issue a new signal for subscribers.<\/p>\n

Chris Vermeulen
\nChief Market Strategies
\nFounder of Technical Traders Ltd.<\/p>\n

NOTICE: Our free research does not constitute a trade recommendation or solicitation for our readers to take any action regarding this research.\u00a0 It is provided for educational purposes only.\u00a0 Our research team produces these research articles to share information with our followers\/readers in an effort to try to keep you well informed.<\/p>\n

TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders\u00a0 – The US stock market stalled early this week as earnings started to hit.\u00a0 A number of news and other items are pending with earnings just starting to roll in.\u00a0 There have been some big numbers posted from JP Morgan and Goldman Sachs.\u00a0\u00a0 Yet, the markets have reacted rather muted to these blowout […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-173935","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=173935"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173935\/revisions"}],"predecessor-version":[{"id":173939,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/173935\/revisions\/173939"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=173935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=173935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=173935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}