Price on the daily has respected the 78.6% Fib Zone of a Bearish Butterfly Structure.
We are currently looking to develop the B-C Wave.
Price action of S&P500 is bearish and is losing steam and strength for further upside as in monthly chart too.
S&P 500 is looking for a steep down movement in coming weeks.
We had a nice bearish crab formed, reaching and respecting every levels of it.
Possibility of a drop between 1400 - 1700 Zone.
SPX enters the key area for its nearest future as the price came up to 0.764 fib ret of the last downward move and the 1.618 extension of the AB leg in the potential structure pattern. Look for the signs of weakness on 1H chart (divergence on RSI or price channel breakout) it may be goog risk reward short trade with stops above 2120 and potential targets...
In 2008 we had very similar case. S&P500 tagged twice (double bottom) at the weekly 200MA. That lead to a furious rally towards the weekly 50MA. What happened after that... Well you all know.
Repeat after me :"This is not 2008, This is not 2008, This is not 2008, This is not 2008, ...."
I recommend looking the related idea also.
This is a longer term idea based off charting done from 2008 until now, and where we expect to go from here.
For this interested, earlier today I did a shorter term outlook using daily candles, for those interested the link is: , or you can find it in my profile. Feedback and constructive criticism is always appreciated, happy trading!
While last top at 2007 holds, pressure remains with the bears. 15M Shows us the bottom TL is broken. Sell the retest of last support and trendline zone.
SL 1 point above last high.
Target
T1 1965
T2 1910
T3 1800
The S&P 500 is starting to look pretty dismal on the longterm daily chart, despite the recent relief rally. Following the curves, price is on track to go into panicked free fall sometime in June or July. But as is the chaotic nature of the seneca cliff, It could fall a lot sooner than that. The exquisite head & shoulders top that forms the multi year crest of this...
It looks like the market chose the most confusing structure to confuse everyone looking for a turn and convince them that it will never come.
Right now it looks like a possible ending diagonal, so there might be a bit more to go (although the 5 can undershoot or overshoot), but basically the 5 can end any time from now up until the upper pink TL. The green line...
