S&P 500 IndexShort
SPX is drawing a perfect reversal harmonic
This is a speculative chart at the moment because none of these patterns are complete.
SPX is drawing an ascending broadening wedge and we can expect a break down.
SPX is also drawing a bullish butterfly pattern (78.6% on B, 161+261% on D) at 3480. So we could expect a fall and a bounce on 3480, around the 200 days MA (nice coincidence).
Secondly, a touch on 3480 would trigger a 5-0 pattern, with a dead cat bounce up to 3770, followed by another lower down leg (3000-3200).
This bearish scenario is valid as long as SPX doesnt break above the 20 days MA. And i would not recommend a call as long as it's below the 20 dma, as this MA gives the right direction most of the time.
SPX is drawing an ascending broadening wedge and we can expect a break down.
SPX is also drawing a bullish butterfly pattern (78.6% on B, 161+261% on D) at 3480. So we could expect a fall and a bounce on 3480, around the 200 days MA (nice coincidence).
Secondly, a touch on 3480 would trigger a 5-0 pattern, with a dead cat bounce up to 3770, followed by another lower down leg (3000-3200).
This bearish scenario is valid as long as SPX doesnt break above the 20 days MA. And i would not recommend a call as long as it's below the 20 dma, as this MA gives the right direction most of the time.
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