SPX500 is inching closer to a major resistance just above the 3000/30 handle. It is trading in line with its co-index Dow Jones, which is heading towards 25200/300 levels. Believe it or not, the recent rally is nothing but Wave C, within the corrective A-B-C that had begun from sub 2200 levels in March 2020. It is advisable to remain short and add further around 3000/30 handle as SPX500 is expected to resume its most sharp drop since the Great Depression in 1929. Earlier, the indice has carved larger degree Wave (1) between 3400 and 2200 respectively. We are looking for a Wave (2) termination around 3000/30 levels before Wave (3) resumes lower towards 1750 handle. Also note that the Head and Shoulder pattern is also carving its Right Shoulder expected around 3000/30 mark. Overall, SPX500 is expected to remain in control of bears 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.