SPY: Futures on watch. ABC Correction?Quick chart on S&P using Gann box/angles - been finding these to be a great asset when charting potential support and resistance zone. Chart on the left focuses on the next 6 months while the one on the right is for painting a picture of the larger correction that may be at play compared to previous significant correction.
Sitting below the 200MA on the daily, S&P could see more selling pressure and a retest of previous support becomes more likely with the growing uncertainty in the market overall. The 50MA and 100MA on the daily may also be heading for a bearish crossover which would align with the aforementioned uncertainty. The possibility of a Ukraine invasion + Fed turning more hawkish has led to volatility i haven't seen in some time over the last trading days and generally the moves have ended with the sellers in control. With this in mind, the possibility of the chart reflecting an ABC correction seems probably.
At the moment, it is unclear whether or not the B wave is completed, which means there could be at least one more strong move to the upside before a return to the bearish trend. These conditions make for very choppy short term trades so longer period trading strategies and higher time frame charting will lead to less "noise" when discerning and positioning for the next move
(With S&P, there is always the possibility of strong bullish sentiment and movement so the possibility of a wave 3 impulse is included on the chart to the left with bullish fib levels on the chart to the right)
