SPX500 sport should ideally remain below 3233, the June 09, lower top. The recent pullback rally from 2965 lows also looks to be complete at 3153, or might print another high, staying below 3233. Either way, high probability remains for a sharp reversal lower towards 2200 and 1750 in the next few weeks to come. Structurally, SPX500 has carved an impulse drop, followed by a corrective rally; a 5-3 pattern. The earlier drop between 3400 and 2200 was in 5 waves, Wave (1) on the chart. It was followed by a corrective rally A-B-C, towards 3233 levels, Wave (2) on the chart. If the above is correct, prices would hold below 3400 and continue lower towards 2200 and beyond. The conventional Head and Shoulder reversal pattern also indicates a potential Right Shoulder being carved around 3233 levels.
Strategy:
Short against 3400, targeting below 2200.
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 2200.
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.