In the recent trading sessions, the S&P 500 has shown some intriguing patterns. Notably, the index did not honor the 0.618 Fibonacci key level, a significant retracement point for many traders. At first glance, and based on the current momentum, it doesn't seem poised to retest this level in the immediate future.
Historically, the 0.786 level has acted as a robust support for the index. However, given the present market dynamics, I'm skeptical about this level receiving the same degree of respect as before. One of the key indicators fueling this skepticism is the current price trajectory. The S&P 500's price movements are now positioned below the SMA 200, a critical moving average. In contrast, during previous instances when the 0.786 level acted as support, the price was above the SMA 200.
Considering these factors, it seems more logical for the index to gravitate towards the discount zone (which acts as a demand zone).
For traders and investors, this could potentially signal a buying opportunity at that level, but as always, it's essential to conduct thorough research and analysis before making any decisions. For now, I expect the price to go lower until that zone is hit.
Disclaimer: This analysis is based on personal observations and should not be considered as financial advice. Always conduct your own research and consult with a financial advisor before making any investment decisions.
Historically, the 0.786 level has acted as a robust support for the index. However, given the present market dynamics, I'm skeptical about this level receiving the same degree of respect as before. One of the key indicators fueling this skepticism is the current price trajectory. The S&P 500's price movements are now positioned below the SMA 200, a critical moving average. In contrast, during previous instances when the 0.786 level acted as support, the price was above the SMA 200.
Considering these factors, it seems more logical for the index to gravitate towards the discount zone (which acts as a demand zone).
For traders and investors, this could potentially signal a buying opportunity at that level, but as always, it's essential to conduct thorough research and analysis before making any decisions. For now, I expect the price to go lower until that zone is hit.
Disclaimer: This analysis is based on personal observations and should not be considered as financial advice. Always conduct your own research and consult with a financial advisor before making any investment decisions.
Note
UPDATE: Price reached discount zone and ignored the FIB key level ( 0.786) as I predicted. There is still liquidity to take at the discount zone, so I think it will go back and even break the strong low support. Follow me for more.
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.