Fib lines on the chart from the all time high to the March low.
First off, you notice that the bottom could have been identified by the lower low on the SPX while the RSI made a higher hi.
Now, we've perfectly touched the fib line (I didn't think we'd get this high). Bounced off the fib line now and here are my reasons why this is a valid shortable top:
1. Market has made an insane run while economic indicators have all been collapsing.
2. Today witnessed the big gainer's finally seeing some profit taking (AAPL, TSLA, AMZN, etc.)
3. Russel 2000 down more than 4%.
4. SPX made a higher high while the RSI made a lower high (bearish signal).
5. Volume on the downside today validates the move.
6. Break of short term trend line seen in the chart.
7. Break of the 20 EMA on the chart. I would like to see the price stay below this moving average through the close on Monday.
I must admit, I did try to short this market at the .618 fib line and got stopped out, but this looks like finally we go lower.
Short term target is 2650, but I do believe in a continuation longer down trend. I am a believer that we test the low again simply because this market rip is not supported by any fundamentals, earnings are down, guidance is down or not present, 30 million unemployed Americans, etc. SP500 P/E is higher than it was before the market crash!
Always trade with stop loss.
First off, you notice that the bottom could have been identified by the lower low on the SPX while the RSI made a higher hi.
Now, we've perfectly touched the fib line (I didn't think we'd get this high). Bounced off the fib line now and here are my reasons why this is a valid shortable top:
1. Market has made an insane run while economic indicators have all been collapsing.
2. Today witnessed the big gainer's finally seeing some profit taking (AAPL, TSLA, AMZN, etc.)
3. Russel 2000 down more than 4%.
4. SPX made a higher high while the RSI made a lower high (bearish signal).
5. Volume on the downside today validates the move.
6. Break of short term trend line seen in the chart.
7. Break of the 20 EMA on the chart. I would like to see the price stay below this moving average through the close on Monday.
I must admit, I did try to short this market at the .618 fib line and got stopped out, but this looks like finally we go lower.
Short term target is 2650, but I do believe in a continuation longer down trend. I am a believer that we test the low again simply because this market rip is not supported by any fundamentals, earnings are down, guidance is down or not present, 30 million unemployed Americans, etc. SP500 P/E is higher than it was before the market crash!
Always trade with stop loss.
All depends on tomorrow's jobs report.