May 24th, 2022: SP-500 Chart Update
Posted by pugsma on May 24, 2022
5:30 pm EST: The SP-500 gapped down from 3974 to 3943, dropped to 3875 (day’s low), then rallied to 3956 (day’s high) and closed at 3941.
Technical Analysis: Print SharpCharts from StockCharts.com
- NYMO: The NYMO has formed a +DIV between the May 12th closing low of 3932 and Thurs/Fri May 19th/20th closing lows at 3900/3901. The NYMO has closed above zero two consecutive days.
- NYSE A-D Line Cumulative: There is positive divergence between the May 12th closing low of 3932 and Thurs/Fri May 19th/20th closing lows at 3900/3901. This typical of +DIV on the NYSE A-D Cumulative often occurs a key bottom.
- VIX: The VIX has formed a -DIV between the May 12th closing low of 3932 and Thurs/Fri May 19th/20th closing lows at 3900/3901.
Wave Counts:
- The primary (white/green) count has the P2-C3 low at 3810, which is right at the 38% Fibonacci retrace of P1-C3. Wave minute (1) of minor 1 peaked as 5 waves at 3981. The minute (2) wave retraced to the 62% Fib at 3876. The minute (3) target is at 1.62*(1) = 4152. A 23% Fib for minute (4) is at 4086. Finally, minute (5)=(1) at 4259 should complete minor 1. Major [1]-P3 initial target is at 5043 in the spring to early summer of 2023. Note: The primary (white/green) count is valid above 3810.
SP-500 15-min chart:
SP-500 60-min chart:
SP-500 4-hr chart:
SP-500 daily chart:
SP-500 weekly chart:
23 Responses to “May 24th, 2022: SP-500 Chart Update”
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Pramood Kalikiri said
Hi Steve,
Any update on GOOGL chart from April? Did we hit the bottom today or is there a possibility of more downside to 1800 level? Thanks
pugsma said
The 2022 CCA Service had a GOOGL chart with a red P2 target at the 50% Fib of 2019. Today’s low was 2037.
I’ll look doing some CCA individual stock chart updates now that P2 seems to have bottomed.
Pramood Kalikiri said
Ok, Thanks. I will keep an eye out for the updated chart on GOOGL under the 2022 CCA Service.
pugsma said
The primary (white/green) wave count points to something interesting happening on and around Friday June 10 to Wednesday June 15th.
Wayne Curtis said
In what way Steve?
Major High?
pugsma said
The setup is there for a gap up above the down channel tomorrow…
Wbart21 said
NVDA AH.
pugsma said
75% (79 of 104) of “analysts” surveyed expect the stock market to continue down for at least 3 months.
No one called to survey me…
https://twitter.com/deitaone/status/1529463523637702656?s=21&t=ryQjc03ojIKq2R9ZX2CGeA
MS53 said
NYAD cumulative higher low , now higher high in progress. Above its level of the 4091 SPX high on May 17. Gotta hold up on the close.
pugsma said
Yes close matters most.
pugsma said
Once again the SP500 is back up at the upper down channel line with (3975) with a key data point from the Fed to be released. Fed May meeting minute due out at 2pm EST.
pugsma said
Will the market ignore this likely hawkish May meeting minutes (old news) and Has the market sniffed out a dovish Fed pivot in June?
pugsma said
This Fed data point is interesting.
https://twitter.com/deitaone/status/1529430658069712899?s=21&t=ryQjc03ojIKq2R9ZX2CGeA
pugsma said
The two most important market dates in a long time:
Friday June 10th: May CPI Report
Wednesday June 15th: Fed Meeting
pugsma said
Well at least since March 2020.
pugsma said
This is the 5year run rate inflation data the Fed is focused on
Notice how quickly it’s dropped from a peak of 3.59% in March to 2.87% in May. That’s a -20% drop in just two months!
The Fed 5 year run rate on inflation is targeting 2%.
https://twitter.com/mikezaccardi/status/1529464413400580099?s=21&t=ryQjc03ojIKq2R9ZX2CGeA
pugsma said
And the 5y inflation expectation has dropped from 2.67% in May to 2.23% in a May.
Again this is wonderful news for the stock market and shows that Fed can indeed pull off a “soft landing” saving the strong economy we have now and breaking the back of short-run inflation to stable the 5 year run rate near 2%.
Jim Guthery said
Finally some good news!
pugsma said
But it’s not news,it’s data.
pugsma said
From here at 3940 I’m looking for a 2% move (80 points) into the today.
Either a minute (3) of minor 1 is confirmed on move above 3981 to 4020+
Or minute (2) of minor plays out as a flat back down to 3875 to 3860.
MS53 said
thanks.
pugsma said
I see a lot of bears on Twitter bragging about loading puts here before 2pm EST looking for a “crash”.
I also noticed CPCE (equity only put/call ratio) spike near a high last night.
Rocket fuel ?
Jim Guthery said
I agree so many bears on twitter, including the so called pundits clamoring SPX 3400