S&P 500 IndexShort
S&P 500 More Downside Risk
A few factors to consider
a. Supply / Demand - the Supply Zone is at the prior swing high (ATH) of 5679. The Demand zone is at 5220-5270.
b. Support level - support comes in 5320. Tested by 8 candles, broken by 1.
c. Equal Measured Move - if we consider an equal move as the last bearish retracement in March/April , we arrive also at 5320.
d. Fibonacci - this area of interest also coincides with Fib 50-618 levels.
e. RSI - is in the selling half , sitting at 41. Price has a deal of room to move towards the demand zone.
f. Volume Spread Analysis - yesterday had an extraordinary volume with a large spread. The
buyers got involved , but the sellers turned up bigtime. Today we have an average volume
as price shuttles lower, some 40 points given up on the lower volume.
5400 has been a line in the sand. However, with the dominance of selling seen in the last 12 days , combined with the above factors , a bias exists for a trade to the
short side.
a. Supply / Demand - the Supply Zone is at the prior swing high (ATH) of 5679. The Demand zone is at 5220-5270.
b. Support level - support comes in 5320. Tested by 8 candles, broken by 1.
c. Equal Measured Move - if we consider an equal move as the last bearish retracement in March/April , we arrive also at 5320.
d. Fibonacci - this area of interest also coincides with Fib 50-618 levels.
e. RSI - is in the selling half , sitting at 41. Price has a deal of room to move towards the demand zone.
f. Volume Spread Analysis - yesterday had an extraordinary volume with a large spread. The
buyers got involved , but the sellers turned up bigtime. Today we have an average volume
as price shuttles lower, some 40 points given up on the lower volume.
5400 has been a line in the sand. However, with the dominance of selling seen in the last 12 days , combined with the above factors , a bias exists for a trade to the
short side.
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