SPX500 might have carved a meaningful top around 3050/70 levels yesterday, as the indice pushed higher by few points that the projected 3030/50 levels earlier. The pattern being formed on the weekly chart could be that of a shooting star, indicating a potential bearish reversal ahead. In terms of price action, a break below 2766 would confirm that the trend has reversed. The wave structure is as follows: The drop from 3400 towards 2200 is 5 waves seen on lower time frames and hence labelled as Wave (1). The subsequent rally towards 3068 is in 3 waves, which is corrective and hence marked as A-B-C here, Wave (2) potential termination. If the above counts are to hold, SPX500 should be well underway towards 2200 and beyond as Wave (3) progresses. Overall structure remains bearish against 3400.
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.