Coronavirus and S&P

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It is the first time that I have a situation like this while studying indicators like these ones, so I am going to document what is going on.

The starting snapshot

4 weeks after the historical highest SPX when was at 3400 points this is what happens.

Initial view

  1. The McClellan oscillator seems to decrease the fall, in theory it begins to draw a divergence, which to me it still needs a few days to confirm.
  2. The “strong hand” sales volume is supposed to be decreasing, but the SPX is still down.

Things to watch:

  1. The US senate, congress and the FED agree;
  2. the impact of the COVID-19 in US.

Update 08/April/2020

  • SPX climbed from 2250 to 2789.
  • McClellan turned green, but ADX is still not on a positive trend.
  • Big buyers are still selling.

Update on 08/May/2020

  • A channel has been build between 2800 and 3000
  • ADX is positive and McClellan keeps being green.
  • Buy buyers are still selling, but closed to the buy line.
  • Fed continues sending money to the market, it’s incredible.

Update on 08/June/2020

  • Market flying since May 27th over 3000. It’s when big buyers started to buy strongly.
  • All green.
  • Fed continues sending money to the market.

Update on 08/July/2020

  • Now a channel between 3000-3150 is build.
  • McClellan always around zero and red is predominant.
  • Market breadth is still positive, no news.

Update on 08/August/2020

  • The channel between 3000-3200 has been passed and now is over it.
  • McClellan always around zero and red is predominant.
  • Market breadth is still positive, no news.

Big buyers are buying consistenly:

I stop adding comments to this post by the moment,as I’m focused on the POMO purchases and the actions of the FED.

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