In this trade I intend on shorting the SPX, S&P 500 or US500 (depending on your broker) following a bearish breakout and close of the potential bearish rising wedge formation.
This trade is based upon the following technical factors that we can potentially see from the 4H chart:
1. Bearish rising wedge formation
2. Resistance at the 61.80 fib retracement
This is what we have now for the S&P 500 Index (SPX):
A rising wedge breaking down.
Prices going below EMA10.
Indicators turning bearish.
It is looking down now.
If support is found on the blue dashed line, a short-term bounce is possible before more drop, but it is likely that it goes straight lower.
Thanks a lot for reading.
Chart shows a possible double top forming after the strong relief rally we saw after the crash in March. I think it is possible that if 2850-2900 level becomes resisted again, then the index could fall to the next major support level of 2700.
Maybe too early to say, but one of the many possibilities we could see the S&P500 do over the next few weeks is a head and shoulders pattern. That might just send it back down to the $2200 level or even lower. Just a possibility. Nor long or short on this one.
this will decide whether it can go back into its original trend by going through the resistance or bounce back and stay in the lines given. unless more money is injected I think It will go lower and would be a good sell point
The S&P 500 (SPX) is now starting to bounce.
The sellers are exhausted according to the indicators and we are seeing a strong jump taking place today.
We have more details on the chart above.
We believe that prices can bounce before producing one final strong drop, but it all depends on how these support and resistance levels are handled, we remain open to all...
Just a quick follow up on my last update for the SPX... I see more red.
After prices dropped the first time I was expecting a bounce and it took place... Now we are seeing a higher low... It won't do much.
I believe there will be another failed attempt at resistance before prices start to move lower.
The Coronavirus situation will get worse before it is fully...
The SPX (S&P 500 Index) is headed for a drop that is likely to hit as low as 3273.05 or up to 3258.08.
If EMA50 does not hold as support, then prices can go even lower and hit 3188.65, this can all happen within 2 weeks.
The indicators, MACD and RSI, are showing bearish tendencies... Prepare for the drop.
This is not financial advice.
Thanks a lot for...
We have been watching this pair for many months wondering when or if the big drop and change in trend will come, But week after week, month after month it keeps increasing ? Whats your opinion and when/if do you think it will change trend direction ?
SPX in need of correction before reversion to BULL
Diversion going back months on RSI etc
Recent pullback and now Head and Shoulders on FOMC day
Targeting 1.272 - 1.618 fib extension of A leg down in ABC move
The S&P 500 (SPX) has been printing lower highs and is losing momentum, a potential drop is developing.
On the chart above I've marked the different support levels as well as the different potential scenarios.
We believe the SPX will move lower based on chart signals and past history.
Feel free to leave a question and share your thoughts.
This demonstrates how a 120 / 20 Moving Average configuration can call short entry points against the S&P500.
The same config can also be used to call rally points.
Explanation on the chart.
Crossovers call changes of overall direction.