S&P 500 dead cat bounce and collision to 2400 points and lowerWhen talking about S&P 500 as per graph logg we could make conclusion that this was "dead cat bounce.
Daily MACD confirms further bearish momentum.
RSI turning against.
Further fall is imminent to 2400 points.
Important thing to say which is subjective opinion, but previous results add weight to expertise:
* S&P500 suggested retracement at the Ocotber 2015 and on Janury/February 2016 being worth 1867 points.
That was mathematically justified peak of S&P price index.
Instead, we had " push" to 2.700 points.
Presumably because Bezos bought Washington post 2013 while calling for buy of his shares.
In practical terms after posting on twitter 15.th of November TA about S&P and NDAQ collision, people were in denial.
However, index value fell from 2723 points bellow 2400 points making 11,5% fall X 24 trillion USD=2676 billion USD loss achieved on SPX from 15.th of November to end of December.
Value of previous drop on SPX surpasses GDP of Germany, France, Italy or Russia.
Now, we have pretty much same situation.
After " dead cat bounce" i am expecting confirmation of 2400 level, therefore i would short it from this position with very narrow s/l placed.
S&P 500 peaked by any parameter.
Stochastic RSI turning against (peaked already) whether daily/weekly basis.
MACD implies for weekly bullish crossover which might cause some kind of pump (therefore S/L is placed very near to 2720 index value).
Having on mind that even current S&P500 index value is actually gifted price for uneducated, i would recommend every shareholder to clear his position in order to avoid buying on " right shoulder"
SPX will continue to make lower highs (probably this one which will retrace back to 2400) points making 2500 billion US dollar loss and right after new lower high and further collision which could actually trigger massive selloff and price dumping whether we are talking about SPX, NDAQ or DJI.
S&P500 index has no healthy grounds for this index value and further fall is imminent all the way down to 1867 points which is 33% additional fall in Index points.
Money which is used for pumping index over " mathematically justified price peak=1867" points could now cause yo yo effect and cause massive reversal and selloff.
As long banks or big holders are willing to pump price, it will be so, but, as time passes, it becomes more and more expensive to maintain artificial price as this one.
Gold and silver are the only safe storage of value.
Everything else will collide.
Good luck to everyone.
