VOO (Vanguard S&P 500 ETF) – Bearish Wave ContinuationOverview:
This analysis on VOO highlights a possible short opportunity as it completes a corrective wave structure. Utilizing Elliott Wave Theory and Fibonacci retracement, we anticipate a reversal within the resistance zone leading to further downside continuation.
📊 Technical Analysis:
Elliott Wave Structure:
- Wave W: Completed with a significant drop, signaling bearish momentum.
- Wave X: Retracement phase nearing completion at a critical resistance zone ($550.77–$551.54).
- Wave Y: Expected continuation lower, targeting key Fibonacci extensions.
Fibonacci Analysis:
- Resistance Zone: $550.77–$551.54 (between 61.8% and 65% retracement).
- Stop-Loss: $557.91 (just above the 88% retracement for protection).
- Target 1: $538.66 – Previous support level aligning with the 1.0 extension.
- Target 2: $526.78 – Confluence of the 1.618 Fibonacci extension and structural support.
Bearish Confirmation:
Price rejection within the resistance zone will confirm the setup.
Look for increased volume and bearish candlestick patterns before entering the trade.
🌐 Macro Overview:
Market Sentiment:
Continued market uncertainty driven by inflation and Federal Reserve interest rate policies may dampen bullish sentiment.
Economic Data:
Weakening consumer sentiment and declining corporate earnings expectations suggest potential downside for the S&P 500 ETF.
Sector Impact:
Tech-heavy sectors and growth-oriented stocks within the S&P 500 are likely to face pressure due to rising yields.
📌 Trade Plan:
- Short Entry: Between $550.77–$551.54 within the resistance zone.
- Risk Management: Stop-loss at $557.91.
- Profit Targets: Target 1 at $538.66 and Target 2 at $526.78, offering a solid risk-reward ratio.
⚠️ Risk Considerations:
Monitor economic events such as CPI releases or Federal Reserve statements, as they could affect the broader market trend.
Would you take this trade, or do you see the market moving differently? Let me know in the comments! 🚨📉
