SP500 - Daily
How high does a ball bounce before heading back south?
We saw a fast re-test of the megaphone channel bottom last week which can be viewed as a FOMO move as people turned to risk on after a three-week decline. Sellers came back at week close, pushing the price down below the trendline - again acting resistance.
For week 14, I'm expecting the price to retest the previous bottom with a second target at Fib 50% of the 2009 rally. In my opinion, it is still too early to say whether we have establish a solid bottom or not, and the coming weeks will give us the answer. With that said, I'm still negatively positioned until we come down to the 2009 levels for a new evaluation of the price action scenario.
We saw a fast re-test of the megaphone channel bottom last week which can be viewed as a FOMO move as people turned to risk on after a three-week decline. Sellers came back at week close, pushing the price down below the trendline - again acting resistance.
For week 14, I'm expecting the price to retest the previous bottom with a second target at Fib 50% of the 2009 rally. In my opinion, it is still too early to say whether we have establish a solid bottom or not, and the coming weeks will give us the answer. With that said, I'm still negatively positioned until we come down to the 2009 levels for a new evaluation of the price action scenario.
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