SPX500 has reversed sharply as expected, after hitting resistance zone around 2900/30 levels last week. This was a much awaited reversal an it came after hitting 2954, just above the defined zone. Unlike its counterpart, the Dow Jones, which remained shy of hitting 25000/200 resistance, the SPX500 has now fulfilled all criteria for a bearish resumption. The earlier drop from 3400 through 2200 was an impulse, Wave(1) on the chart. The subsequent rally was corrective and managed to reach fibonacci 0.618 resistance around 2939, Wave (2) on the chart. Shooting star candlestick pattern confirms a potential reversal ahead. The right shoulder seems to be in place for the Head and Shoulder reversal. If all above holds well, SPX500 is headed lower from here until 3400 remains intact.
Strategy:
Short against 3200 (ideally 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 3200 (ideally 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.