Is the next big crash starting?
SPX500USD
I've been watching the S&P closely for the last month during our recovery phase. It's been a great ride up, but today it's starting to look like the cracks are once again forming.
The below analysis is as I see it. This is not advice. Please do your own research before entering any trade.
Signs of a potential reversal:
1. We have recovered to the point of reaching the "Golden Pocket", which is the idea place to open a short for minimizing risk, between the 50 and the 61.8 Fibs.
2. We have seen a bull flag formation on both the Daily and the 4hr, with both breaking down and out during the last trading session.
3. We rejected off the 50 day moving average on the Daily.
4. Moving average on Volume is reducing.
5. MACD line has turned and looks poised to cross down below the signal line.
6. CCI is trending down and fallen out of upward channel.
None of this guarantees that a crash is coming, but it's certainly got me interested.
Potential SHORT Trade Setup
ENTRY: 2740-2770 (Anywhere here)
STOP LOSS: 2970 - 6.89% (Clear those fibs)
TAKE PROFIT 1: 2320 - 16.73%
TAKE PROFIT 2: 2176 - 21.70%
TAKE PROFIT 3: Let run
RISK:REWARD: 1:2.4
As per normal risk management practice, once the trade starts moving, reduce your SL and potentially apply a Trailing Stop in a fast moving market.
Please DO YOUR OWN RESEARCH!!
Happy Hunting!
SPX500USD
I've been watching the S&P closely for the last month during our recovery phase. It's been a great ride up, but today it's starting to look like the cracks are once again forming.
The below analysis is as I see it. This is not advice. Please do your own research before entering any trade.
Signs of a potential reversal:
1. We have recovered to the point of reaching the "Golden Pocket", which is the idea place to open a short for minimizing risk, between the 50 and the 61.8 Fibs.
2. We have seen a bull flag formation on both the Daily and the 4hr, with both breaking down and out during the last trading session.
3. We rejected off the 50 day moving average on the Daily.
4. Moving average on Volume is reducing.
5. MACD line has turned and looks poised to cross down below the signal line.
6. CCI is trending down and fallen out of upward channel.
None of this guarantees that a crash is coming, but it's certainly got me interested.
Potential SHORT Trade Setup
ENTRY: 2740-2770 (Anywhere here)
STOP LOSS: 2970 - 6.89% (Clear those fibs)
TAKE PROFIT 1: 2320 - 16.73%
TAKE PROFIT 2: 2176 - 21.70%
TAKE PROFIT 3: Let run
RISK:REWARD: 1:2.4
As per normal risk management practice, once the trade starts moving, reduce your SL and potentially apply a Trailing Stop in a fast moving market.
Please DO YOUR OWN RESEARCH!!
Happy Hunting!