The May 2022 'long-legged doji' foretold how the second half of the year would unfold on the S&P 500 Index (SPX)...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 December 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. As a reminder, my 2021 Market Wrap-Up & 2022 Forecast can be read here.

(Click on image to enlarge)

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