The infamous Sell in May and Go Away.

2020年5月4日

We are afraid of the famous “Sell in May and Go Away”, and that’s always good to put some senses in our heads. Let’s see what the chart can tell us.

Today the bulls reacted, after a very nice and healthy pullback to the 21 ema. That’s very normal and is still a bull trend, although there’re some signs of danger here, and I’ll talk about them latter.

Let’s see the hourly chart now:



SPX did a Head & Shoulders pattern and now it seems it’s doing a pullback to the 21 ema, and that’s a decisive point. If the price loses the 2800 (black line), SPX can slip further down, and the bears will dominate for a while. And that’s a real possibility here, especially if we look the weekly chart:



Last week it did very classic bearish patter called Shooting Star, just when it reached the 61.8% fib retracement and the 21 ema. To sum up, a very classical bearish sign in a resistance zone. That’s what scares the most the bulls here, and they should be very aware of this.

Let’s see how the bulls are going to react now.

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Thank you very much.

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