We have been observing this Rising Wedge on the S&P 500 for a while now and I expected the price to at the very least reach the 61.8 Fibonacci retracement level. It finally tagged this level today and now the question becomes whether it is going to retest the 200 day moving average or not. The likelihood of getting one more swing to the upside of this rising wedge to retest much stronger resistance is quite high. However, I expect the price to reverse quite rapidly after that. Most new investors have never even experienced an actual bear market (the last recession was 12 years ago) and assume that a V-shaped reaction rally on declining volume is healthy. I am bearish unless we manage to break the 200 day moving average and close multiple candles above it. I advise everyone to be very cautious and observe how we react with the upcoming resistance levels. Smart money will be taking profits in this region.
See you and good luck!
See you and good luck!