SPX500 counter trend rally is extending further towards 3080/90 and could possibly reach towards 3130/40 resistance. Believe it or not, a bull trap is underway since May 14, 2020 and it is best to avoid going long. The earlier drop was an impulse between 3400 and 2200 levels, confirming that the move remains incomplete. SPX500 is carving a classic 5-3 Elliott Wave Pattern along with the traditional Head and Shoulder reversal. Ideally, a 5-3 should be followed by another 5 wave movement towards the larger trend, which is down in this case. It is just a matter of time before SPX500 reverses sharply lower towards 1750. Overall, the bearish structure remains intact until prices stay below 3400 handle.
Strategy:
Short against 3400, targeting below 1750.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Strategy:
Short against 3400, targeting below 1750.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
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.
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.