What will cause Wall Street to collapse and close all long-term positions?

What will cause Wall Street to collapse and close all long-term positions?
What will cause Wall Street to collapse and close all long-term positions?

What will cause Wall Street to collapse and close all long-term positions? Many are starting to bandage their heads but what is happening these days has been promptly marked by our setups and in our opinion this continues to be phase B of the Christmas rally.

The chances that a medium-term decline (1/3 months perspective) has begun since 17 November are really low. In fact, we believe that by the annual setup of 8 December the markets will form a new bullish swing that will accompany us until mid-February / early March.

Today a new setup expires and today it will be important to understand what awaits us until the dates just indicated.

As usual we will follow events from day to day at our point in the markets and act accordingly.

Let’s proceed step by step

Here are the levels to monitor for today

Dow Jones

Bearish trend until we see a daily close above 35.366. Lasting highs only with a weekly close above 35,930.

Nasdaq C.

Very short bullish trend until we see a daily close below 15,644. Lasting highs only with a weekly close above 16,213.

S&P 500

Bearish trend until there is a daily close above 4.673. Lasting highs only with a weekly close above 4,744.

The weekly fractal

What are we waiting for? Rebound attempt between Monday and Tuesday, formation of the weekly maximum and then descent until Friday.

Today it is important because two elements that could lead to a reversal are combined: the setup and it is Tuesday in which it will be necessary to define whether the weekly maximum has been marked or not.

Prices expected for the current week

Dow Jones

minimum area 33,878 / 34,166

area of ​​maximum 35,034 / 35,339

Nasdaq C.

minimum area 15,023 / 15,209

area of ​​maximum 15,645 / 15,821

S&P 500 Index

minimum area 4.498 / 4.474

area of ​​maximum 4,638 / 4,605

Goals that could be achieved quarterly

Dow Jones

34,670 and then 32,743. At the moment the probability is 20% that it will go below 32,743.

Nasdaq C.

15.259 and then 14.301. At the moment the probability is 20% that it will go below 14.301.

S&P 500 Index

4,472 and then 4,202. At the moment the probability is 20% that it will go below 4.202.

What will cause Wall Street to collapse and close all long-term positions?

A closure today of less than:

Dow Jones

33.785

Nasdaq C.

14.181

S&P 500 Index

4.278

What to invest in?

There are many undervalued stocks that currently have a very short short and long upward trend and for this reason it is better to wait for developments before buying or selling short.

(We remind you to carefully read the warnings regarding this article, which can be consulted WHO”)

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