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S&P 500 - BUY SIGNAL

Posted by on in The Time Factor
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Despite all of the market turmoil recently, the price action in the US equity markets has actually been behaving quite predictably.

In a recent email sent to colleagues, I nominated that the price target of 1806 would act as price support on the downside representing a place to initiate longs.  So far, the S&P500 has reached a low of 1805 and has rallied over 100 points.  This provided a very tidy profit for those who had knowledge of the price forecasting techniques described in volume 1 of trading with the Time Factor.

In addition, my proprietary trading to Time forecasting technique was also suggesting that the 20th-21st of January was the date to watch for a market turning point.   The current low in the S&P500 so far is 20 January 2016 - a time forecast made months in advance that was to the exact day!

The charts below show how I did it...

 

Chart 1 - S&P 500 futures index (daily chart)

SP500 - price forecast 20 Jan 2016click to enlarge image

The chart above highlights the reference points I used to make the price forecast of 1806 for the S&P500 index.  These reference points are also related to the all-time high in the S&P500 of 2134 - a price which my readers will know was a strong forecast price for a market high.

With market volatility heightened in recent trading sessions, Thursday and Friday represented the ideal time to initiate long positions by selling put options against the index in anticipation of a rally.  This trade has proved to be very profitable.

 

Chart 2 - S&P500 'trading to Time' dates

The chart below shows how my trading to Time technique described in volume 2 of Trading with the Time Factor has been working beautifully at calling market tops and bottoms on the US equity markets in 2015 and so far into 2016.

The most recent high on 30 December 2015 was such a predictable market turning point, that one of my readers nearly doubled his trading account in less than a month using the knowledge of my trading to Time technique.

SP500 - 20 Jan 2016 trading to time 2click to enlarge image

With February 17th-18th now looming as the next key date to watch, I can't wait to watch the markets unfold over the next few weeks and see if they continue their predictable run.

Until next time...

 

 

 

 

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