The May 2022 'long-legged Doji foretold how the second half of the year would unfold on the S&P 500: with choppy, volatile indecision.
As shown on the following monthly chart, the price has, essentially, traded sideways in a large trading zone, between 3500 and 4300. It's bounced back and forth between Buyers and Sellers like a yo-yo.
As it's turned out, any gains, either on the long or the short side, have been short-lived...much like the first half of 2022 was.
Day-to-day or week-to-week trading for 2022 has been erratic and non-directional...and about as interesting as 'watching paint dry.'
Unless you took profits during the December 2021 candle -- which followed November's bearish 'shooting star' (which wasn't confirmed until January's 'bearish engulfing' candle) -- and either shorted the markets and held, or simply stayed out, you were caught up in this slow slip downwards, dominated by choppy large-scale sideways consolidations.
As I mentioned in my post of Dec. 21, we may see a fourth 'candy cane' form in January 2023, with a price target of 3200 if Sellers remain in control. We'll see what happens.
I hope to post my Annual Forecast for the New Year in the next few days, so stay tuned.
