Skip to main content

Weakness on US Market


Early Warning
The above was a chart I shared with our Wyckoff community showing SnP500 climbing higher with a weak FFI reading (FFI is our proprietary price and volume based tool, free for our community, to recognise if funds are flowing and supporting a particular trend). A weak and divergence FFI signifies that the upward trend (mark up) is weak and poised for correction.

Within days, we saw the -54 points (1.90%) drop on S&P500. 

 What's More Important!
To add further, the -54 points is significant to our market studies. Its a Bearish Change of Character for SnP500. 

 Character is one of the key principles within our Wyckoff community. On a Upward Trend (Mark Up), we expect price to increase with more volume and pulls back with light volume, vice versa for downward trend (Mark Down).

 On 22 Mar, we saw SnP500 sell off with large volume on a upward trend. This signifies a bearish change of character on an upward move. 

 Now we are watching closely for further bearish observations to determine if the index has reached a top. 

 Below is an analysis of the chart.

 To learn more about interpreting market actions and trade in harmony the market, 

 Join Us in our upcoming Richard Wyckoff Method class and community. The course is jointly organised with SGX Academy. 

Disclaimer applies.

Most Popular

Palantir Technologies Inc PLTR: Technical Rebound at Sight After US Broad Market Stabilises

  Palantir Technologies Inc. (PLTR) USD86.24 Palantir (PLTR) posted a bullish reversal, closing above the 13-day SMA (83.56) with significant volume expansion. This signals potential momentum strength in the near term. First key resistance zone between the 50% and 61.8% Fibonacci retracement levels (USD 99.85 – 105.79), which could present selling pressure. Disclaimers apply
Read more

DBS Group Holdings (D05) and Straits Times Index (STI): Technical Change of Momentum

         DBS Group Holdings (D05) and Straits Times Index (STI):  Technical  Change of Momentum  Recent price developments in DBS Group Holdings (SGX: D05) and the Straits Times Index (STI) signal a critical inflection point. Both instruments have breached established ascending trendlines, suggesting a potential reassessment in investor sentiment and market trajectory.  DBS Group Holdings (D05) Price Dynamics:  DBS has decisively broken below its ascending trendline, closing at SGD 44.23, registering a 3.53% decline. The price action underscores weakening upward momentum and raises the probability of an extended correction phase. Key Technical Levels: 38.2% Fibonacci retracement: SGD 41.45 50% Fibonacci retracement: SGD 39.78 61.8% Fibonacci retracement: SGD 38.12 Full retracement: SGD 32.72 Outlook:  The breach beneath the trendline suggests an erosion of bullish conviction. Immediate attention should be on the 38.2% retracement le...
Read more

Week Ahead: US Indices Momemtum in Question

    Week Ahead: 10 March 2025 Key event this week was  U.S. indices technically closed below the key 30-week (or 150-day) moving average . For the upward trend to continue, the indices need to reclaim levels above the moving averages. Remaining below the 30-week (or 150-day) moving average could indicate that the upward trend has reversed downward. However, in the short term, we expect a rebound as the indices trade near their respective support levels. Medium Term: S&P 500 (SPX):  The S&P 500 broke below its key upward trendline, which had been established since October 2023. In the longer term, we expect the index to trade sideways or move in a downward direction. In the short term, we anticipate the S&P 500 will find support at the 5,700 level and could rebound to test the 5,860 and then the 5,966 resistance zones. Straits Times Index (STI):  The technical trend remains bullish. We maintain a constructive outlook while staying vigilant for any sig...
Read more