Daily analysis-07Jul2022

First, look at the $S&P 500 Index(.SPX.US)$ today. We can observe 2 main things: Down-trend is still intact, and the price is below MA30 which is still sloping down. This is a typical phase 4 stock where the decline is still dominating.

What we need to look for is when the MA30 is flattening and when the gap between the stock and MA30 are not so far from each other= this is where the stock is reaching phase 1 (the bottom phase). We shall still wait. $Nasdaq Composite Index(.IXIC.US)$ is also showing the similar pattern.

Today, the $Crude Oil Futures(JUN4)(CLmain.US)$ finally closed below MA30. Indeed this is a good news. Hopefully this phase 3 will turn to phase 4: where the MA30 becomes a strong resistance, and MA30 start to slop down. Once this is confirmed, inflation caused by oil/food was peaking and we shall start to see the news where the price is controlled etc in the near future. Stock/future normally leading 3-6 months.
In summary, this is a good sign that the crude oil was reaching the top.

Lastly, for $Alibaba(BABA.US)$ , the volume is not strong enough to push its further. If there is a bull candle with a strong volume that push it beyond the resistance at 120, i will enter it as reversal trade.

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