S&P Fear & Greed index hit a deep low of 4 on Friday close.
The herd are in extreme panic and the media have been blaring fear based news so everyone "knows" that its time to sell.
S&P Futures and CFD have gapped down to open the week.
The gap hits a 1:1.618 Golden Window extension.
We haven't yet had any bounce more than a limp 0.382 retracement where a 3 wave continuation pattern topped out as Trump's tariffs came into effect.
And so with no significant bounce, this extension is very deep and there is a decent chance that a significant bullish pivot will print in this area; perhaps tidily within this Golden Window band; between the 1.618 - 1.786 overshoot.
...
The 2022 market top support intersects tidily within the Golden Window.
There will be plenty of short sellers taking profit at this very significant support.
This will be an area of very high liquidity and the market makers love to trade against high liquidity.
...
The Week RSI has gone significantly oversold for the first time since the 2020 Pandemic Crash.
And the day RSI just went sub 18.
The day RSI is actually lower than any time since 2015!
And notice that on the Futures chart above there is a very large gap to open the week.
Considering the aforementioned, there is decent chance that it is an Exhaustion Gap that would precede a bounce.
...
So all of this sets up a nice contrarian trade here.
Even with all these technicals, it is a dangerous positional entry in high volatility chart.
I think we will likely see another bearish wave following a bounce to complete a high time frame correction with a minimum of 3 correction waves.
But a bounce is due really...
I have taken profit on stock shorts positions on Friday, sold my crypto short positions as stock index Futures / CFD opened with this detail.
Now I am positioned long S&P CFD.
Even if it continues to slump, I think this will be due a bounce soon enough.
But a tidy Golden Window catch would be ideal.
Not advice
The herd are in extreme panic and the media have been blaring fear based news so everyone "knows" that its time to sell.
S&P Futures and CFD have gapped down to open the week.
The gap hits a 1:1.618 Golden Window extension.
We haven't yet had any bounce more than a limp 0.382 retracement where a 3 wave continuation pattern topped out as Trump's tariffs came into effect.
And so with no significant bounce, this extension is very deep and there is a decent chance that a significant bullish pivot will print in this area; perhaps tidily within this Golden Window band; between the 1.618 - 1.786 overshoot.
...
The 2022 market top support intersects tidily within the Golden Window.
There will be plenty of short sellers taking profit at this very significant support.
This will be an area of very high liquidity and the market makers love to trade against high liquidity.
...
The Week RSI has gone significantly oversold for the first time since the 2020 Pandemic Crash.
And the day RSI just went sub 18.
The day RSI is actually lower than any time since 2015!
And notice that on the Futures chart above there is a very large gap to open the week.
Considering the aforementioned, there is decent chance that it is an Exhaustion Gap that would precede a bounce.
...
So all of this sets up a nice contrarian trade here.
Even with all these technicals, it is a dangerous positional entry in high volatility chart.
I think we will likely see another bearish wave following a bounce to complete a high time frame correction with a minimum of 3 correction waves.
But a bounce is due really...
I have taken profit on stock shorts positions on Friday, sold my crypto short positions as stock index Futures / CFD opened with this detail.
Now I am positioned long S&P CFD.
Even if it continues to slump, I think this will be due a bounce soon enough.
But a tidy Golden Window catch would be ideal.
Not advice
Note
If you think this thread is worth the whistle then go right ahead and smash the BOOST - thanks 👍. Note
This isn't a good wick nor a good ratio.I took profit and will review later.
Your FA guru can't read a chart💭
I run a technical group with lots of content every day + regular videos, 1:1, chatroom 🚀.
Better than all the rest? My record speaks for itself 💡.
Telegram Group: $50 per month✨.
Contact: t.me/dRends35
I run a technical group with lots of content every day + regular videos, 1:1, chatroom 🚀.
Better than all the rest? My record speaks for itself 💡.
Telegram Group: $50 per month✨.
Contact: t.me/dRends35
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Your FA guru can't read a chart💭
I run a technical group with lots of content every day + regular videos, 1:1, chatroom 🚀.
Better than all the rest? My record speaks for itself 💡.
Telegram Group: $50 per month✨.
Contact: t.me/dRends35
I run a technical group with lots of content every day + regular videos, 1:1, chatroom 🚀.
Better than all the rest? My record speaks for itself 💡.
Telegram Group: $50 per month✨.
Contact: t.me/dRends35
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.