SPX500 seems to be carving a classic Head and Shoulder reversal pattern since 3400 highs. We combine the Elliott Wave counts with Head and Shoulder reversal on the weekly chart presented here. The drop between 3400 and 2200 broke the rising trend line and support around 2345 (neck line) within the H&S reversal, Wave (1) on the chart. Head is marked at 3400, while Left Shoulder around 2950 respectively. The counter trend rally since 2200 lows has matured and it seems to be into its last leg towards 3000/50 levels, Wave (2) on the chart. Along with this, SPX500 would also be carving a potential Right Shoulder around 3000/50, to mark the resumption of the next wave lower within the H&S pattern. Overall, SPX500 is bearish against 3400 resistance, and targeting below 1750 levels.
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.