Analysis:
Observation: We have a major daily red candle cut through 50DMA like butter. Expect a retest like prev 2 times and that will be a great short opportunity with min target to 200DMA
LTF shows 5 waves are done, so a move to 323B (0.382 ) or 333B (0.5Fib + 50DMA)
Expect a drop to
260 B - 200DMA
236 B -0.382Fib
200 B - 0.5Fib
175 B - 0.618Fib
Invalidation: Breaking above and staying above 50DMA
Summary:
-Bearish below 50DMA
-Expect retest and rejection at 50DMA
-Final bearish confirmation below 200DMA
- In an uptrend, index needs to be over 50DMA (orange)
In 2019 rally, 50DMA was not retested
In March, 2020 rally, 50DMA was briefly lost
In a downtrend, index will drop below, retest and get rejected from 50DMA
50DMA lost in July 2019, retested 2 times in July and August
50DMA lost and retest failed in March 2020 crash
Index needs to drop below 200DMA as final confirmation (see Nov 2015)
Observation: We have a major daily red candle cut through 50DMA like butter. Expect a retest like prev 2 times and that will be a great short opportunity with min target to 200DMA
LTF shows 5 waves are done, so a move to 323B (0.382 ) or 333B (0.5Fib + 50DMA)
Expect a drop to
260 B - 200DMA
236 B -0.382Fib
200 B - 0.5Fib
175 B - 0.618Fib
Invalidation: Breaking above and staying above 50DMA
Summary:
-Bearish below 50DMA
-Expect retest and rejection at 50DMA
-Final bearish confirmation below 200DMA