Hi Guys,
The SP 500 made a strong move down last night. Bears took a few sessions to gather downward momentum after the SP reached its 1.618 fib retracement of bear market hi to low. SP 500 was very extended from its 50dma and daily RSI was in overbought and showing divergence ( the two peaks in overbought area), which is strong confluence in any marked resistance zone. A retest of the blue box on the daily RSI, which might coincide with price at the 5625 level or above , could be a good entry point if obvious sell setups appear. The question now is do we get a few percent retracement or is this just another little dip that will immediately be bought back up to all time highs.
The engulfing candle on the daily suggests we pullback to at least the daily support level below, which is the first highlighted box on the chart. AVWAP from the low at end of may and 50 DMA may act as confluence support there. The next box on the chart is where I'd like to see price get to and any further retrace would be a bonus.
Safe Trading all
The SP 500 made a strong move down last night. Bears took a few sessions to gather downward momentum after the SP reached its 1.618 fib retracement of bear market hi to low. SP 500 was very extended from its 50dma and daily RSI was in overbought and showing divergence ( the two peaks in overbought area), which is strong confluence in any marked resistance zone. A retest of the blue box on the daily RSI, which might coincide with price at the 5625 level or above , could be a good entry point if obvious sell setups appear. The question now is do we get a few percent retracement or is this just another little dip that will immediately be bought back up to all time highs.
The engulfing candle on the daily suggests we pullback to at least the daily support level below, which is the first highlighted box on the chart. AVWAP from the low at end of may and 50 DMA may act as confluence support there. The next box on the chart is where I'd like to see price get to and any further retrace would be a bonus.
Safe Trading all
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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.