Week 31 Market Roundup — Vertical Supply Absorption in S&P 500

In Week 30 market roundup, I mentioned that potential scenarios for S&P 500 could either be a false breakout (up thrust) or a backup action for the sign of strength (SOS) rally. Based on last week price action, especially on Thursday and Friday where there were strong evidence of supply absorption on the way up under bad economic data (The GDP of the US economic shrank by 33%), S&P 500 futures closed near the swing high resistance of 3270 after finding demand near 3200.

On the chart of S&P 500 below, the last two bars containing increasing of volume with strong demand tails suggested supply absorption. It is anticipated S&P 500 to trend higher to challenge the next target at 3310 followed by all time high near 3400.

Using the cryptocurrencies to gauge the risk-on sentiment, it is clear that Bitcoin, MIDPERP (Midcap Index Perpetual Futures), ALTPERP (Altcoin Index Perpetual Futures) and SHITPERP (Shitcoin Index Perpetual Futures, aka the small cap) all outperform the equity market indices, as shown below.

Gold finally broke all time high (even hitting 2000). The up move from 1800 was very impressive . It was expected…