SPX track for next couple of weeks idea
200 days EMA 30min has been tested as support every time the graph has been below and a break to the upside has followed.
I therefore expect the price to fall to the area around 3830. If it holds as support - which I expect - then the price will rise to the 41-4200 area but there will be resistance in 4000.
The reason I expect a price in the range 41-4200 is that this level will be 1.618 extension of the zig zag pattern where we have now circled around 1 to 1 extension. This last pump can be a trap for shorting despite the fact that there is a big divergence in the chart and indicators.
We have just today ended as a confirmation day on top of a break out on the 1 day graph. This should support the idea that the price is now falling and testing previous resistance which is now becoming support before the price goes up
I therefore expect the price to fall to the area around 3830. If it holds as support - which I expect - then the price will rise to the 41-4200 area but there will be resistance in 4000.
The reason I expect a price in the range 41-4200 is that this level will be 1.618 extension of the zig zag pattern where we have now circled around 1 to 1 extension. This last pump can be a trap for shorting despite the fact that there is a big divergence in the chart and indicators.
We have just today ended as a confirmation day on top of a break out on the 1 day graph. This should support the idea that the price is now falling and testing previous resistance which is now becoming support before the price goes up
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