Attention traders! S&P 500 gap down usually results in a continuation.
We are overbought, steam is running out, investors are looking to take risk off from their trades for the last two weeks. When those positions close to take profits it will change the markets direction. The very first step was taken, we have gapped down. There is room to go down until we touch either, the Ichimoku base line(Blue line) or the 50EMA (also blue). We also have displayed the Fibonacci sequence and a fall to the 61.8 level would be normal.
We recommend taking 80% of the move down and to set your exit points at around 2860. The sharpe ratio for this trade is 1/1. But for a day trade, well take it.
We are overbought, steam is running out, investors are looking to take risk off from their trades for the last two weeks. When those positions close to take profits it will change the markets direction. The very first step was taken, we have gapped down. There is room to go down until we touch either, the Ichimoku base line(Blue line) or the 50EMA (also blue). We also have displayed the Fibonacci sequence and a fall to the 61.8 level would be normal.
We recommend taking 80% of the move down and to set your exit points at around 2860. The sharpe ratio for this trade is 1/1. But for a day trade, well take it.
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