SP 500 - Looking for sign of short term weakness
Updated
Happy Monday!
SP 500 just nailed its all time high and now moves in an acsending channel, which indicates long term bullishness.
In short term, the price is hitting ceiling of the channel AND formed the AB=CD pattern, we should look for sign of weekness and reduce exposure to long positions.
Activist speculators need to confirm the short setup and looking for an short entry around here and aim at <3000.
Holiday season Santa Claus Rally is usually up-up-up, so we may need more patience than usual before this short setup confirms.
SP 500 just nailed its all time high and now moves in an acsending channel, which indicates long term bullishness.
In short term, the price is hitting ceiling of the channel AND formed the AB=CD pattern, we should look for sign of weekness and reduce exposure to long positions.
Activist speculators need to confirm the short setup and looking for an short entry around here and aim at <3000.
Holiday season Santa Claus Rally is usually up-up-up, so we may need more patience than usual before this short setup confirms.
Note
1. We can see that price respect the channel and break down after hitting the higher bound. 2. AB=CD invalidate itself a little bit but still in play.
This is a high probability setup since we combined 2 patterns each with 52% percent chance of win (according to studies). The combined win rate will be 1 - 0.48*0.48 = 76.96%. Good luck!
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