S&P 500 analysis 24/9/26:

This is the S&P 500 4 hour chart. Although we were seeing divergence between Nasdaq and S&P 500 and we were bearish yesterday, we are going to look at a bullish idea today. We have proposed the idea in the past. But if we look at just the price action on the 4 hour chart, we see the price rallied a lot and then the previous high was taken out- This is a break in market structure and once this happens then until proven otherwise, we ahve to entertain a bullish ideas only. On this basis, if we take a fibonacci retracement our 50 % is around 7662. We want to buy at a discount and so we want to buy below the 50% retracement level. The idea becomes invalidated if price goes below the lows. at around 7550.

This is the daily chart of the S&P 500. we have separated the chart into quarters. What we had was a long period of accumulation. The price is likely to be manipullated to make a higher high in the next quarter starting from October and the price is likely to take out the equal lows below the consolidation. This aligns well with the accumulation, manipulation and distribution pattern of teh market maker models. The analysis is based solely on liquidity only. Again the price action should confirm this idea before taking action in our portfolio.

So today and tomorrow we will be looking at the 7647 which is a crucial support line. Ideally we want to see price close above on both days. If price comes to this level ( we do not know whether it will come or not) then we will look at adding to our positions in some of the strongest stocks in the market. If price goes below the invalidation levels, then we take our losses.

Yesterday even thought the market was weak, many of the stocks in Nasdaq were not selling off. This indicates underlying strength. A few stocks on our radar which are showing accumulation per our propreitary scanner

• Monolithic power systems

• ARM

• Applied materials

• Astera labs

• Seagate technology

• Teradyne

All analysis done in good faith and not investment advice

May the Peace of the Lord be upon you and may he guide you and strengthen you.