SPX500 has carved a neat lower high around 3230 levels over the last week. By the end of the week it has presented an Engulfing Bearish candlestick pattern, indicating a high probable bearish reversal on the way. Two major theories confirm the bearish structure as well. 1. According to The Elliot Wave Principle SPX500 has carved a classic 5-3 pattern since 3400 highs in February. Ideally, a 5-3 pattern should be followed by another 5 wave movement towards the major trend, which is down. 2. The conventional Head and Shoulder bearish reversal pattern has now confirmed the formation of the Right Shoulder after 3230 highs. The next move should be a sharp reversal lower towards 2200 and beyond. Either way, SPX500 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.