SPX500 getting closer and closer to SHORT or PULL BACK ?
Today SP500 fought to break the 1942 resistance level, it broke but pulled back, however it did not broke the 1950, which could be the 1st sign of down direction.
I drew what I m seeing. Clear, I m looking for a short entry but if it fails might also give me good clue of long entry.
Some indicators help confirm the direction but don't do miracle.
Today the 4hours chart shows extensive overbought conditions, loosing strength and more and more close to negative areas, that first sign of enter in a down trend. We also had some bad news about world economy predictions that affect the market but did not drive the market very down, still a very bull trend.
I m particular tracking the two EMA crosses(20,50), and they are getting closer.I m also watching RSI to move bellow 45 and keep moving down and bellow 40. Today RSI moved bellow 50 and stayed bellow 50. AO also is plotting a series of red bar and getting close to negative territory. MACD and STOCH already have their bearish crosses and lines are parallel and keep certain distance, which implies the idea that the down trend still there.
This graphic has only the intention to share ideas and create room for discussion. It is important to remember that market make us fool and pull back in scenarios like that are very welcome once we still in a bull trend.
Safe trades for all
I drew what I m seeing. Clear, I m looking for a short entry but if it fails might also give me good clue of long entry.
Some indicators help confirm the direction but don't do miracle.
Today the 4hours chart shows extensive overbought conditions, loosing strength and more and more close to negative areas, that first sign of enter in a down trend. We also had some bad news about world economy predictions that affect the market but did not drive the market very down, still a very bull trend.
I m particular tracking the two EMA crosses(20,50), and they are getting closer.I m also watching RSI to move bellow 45 and keep moving down and bellow 40. Today RSI moved bellow 50 and stayed bellow 50. AO also is plotting a series of red bar and getting close to negative territory. MACD and STOCH already have their bearish crosses and lines are parallel and keep certain distance, which implies the idea that the down trend still there.
This graphic has only the intention to share ideas and create room for discussion. It is important to remember that market make us fool and pull back in scenarios like that are very welcome once we still in a bull trend.
Safe trades for all