SPX target buy zone at 3,380 to 3,240
Technical trading is about confluence of indicators to increase probability of trade success. In this case, there are several indicators pointing towards a reversal in the SPX; An oversold daily RSI, a weekly RSI approaching oversold territory, Bullish divergence forming on the daily RSI, a descending Megaphone Pattern (79% probability), and the strong support of pre-covid highs. In my opinion, we are due for a significant bounce on the S&P 500. If the descending megaphone structure plays out, this would correspond to a price target of around $5,000 for the S&P. NFA.
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