Week 26 Market Roundup — S&P 500's volatility is expected in Wyckoff Phase B

Using Bitcoin and Shitcoin Index Perpetual Futures as analogues in my Week 25 Market Round up, I mentioned that S&P 500 futures is still in a trading range between 2923–3230 and likely to break 3060 to test the low from 2930–3000.

As annotated below, the current secondary test for the prior change of character reaction has increasing volume yet the movement is not as impulsive as the change of character, in terms of the spread and momentum. This sort of grinding down move is a bullish character. Let’s monitor closely if there is shortening of the downward thrust followed by quality demand to reverse the reaction for a bullish scenario.

Using Wyckoff phase analysis for S&P 500 as shown in the daily chart below, the current reaction looks like a secondary test (ST) within the trading range between 2923–3230. During Phases A and B, high volatility is expected. The up and down swings showed up in the past week triggered by the second wave of Coronavirus are aligned with the price movement character in Phase B. So far, S&P 500 is still in a trading range (2923–3230) with the bias to be confirmed later.