Topping pattern in the S&P 500
What a start to the year and what a week to end January with! Aside from all the market news and crazy activity, the ES1! did something quite precarious on Friday. It closed beneath a support trendline on the daily. Well who cares, trendlines break all the time. In this particular instance this is how the SP500 has topped for the past two years.
If you scroll back on the chart you'll see some other examples of when this occurred. On average it seems to pull back at least 3.5% to 6.5%. The two most recent times were the post gamma squeeze sell off at the beginning of September as well as the enormous breakdown in late February 2020.
Based on this, targets for the SP500 sit between 3575 and 3463, I expect these levels to be reached within the following two weeks, if not this upcoming week. There is obviously more room to the downside beyond these targets and there is potential for a fake breakdown just like it did almost exactly a year ago today.
Stay mindful and stay sharp. Get the bag and protect the bag!
If you scroll back on the chart you'll see some other examples of when this occurred. On average it seems to pull back at least 3.5% to 6.5%. The two most recent times were the post gamma squeeze sell off at the beginning of September as well as the enormous breakdown in late February 2020.
Based on this, targets for the SP500 sit between 3575 and 3463, I expect these levels to be reached within the following two weeks, if not this upcoming week. There is obviously more room to the downside beyond these targets and there is potential for a fake breakdown just like it did almost exactly a year ago today.
Stay mindful and stay sharp. Get the bag and protect the bag!
Comment:
Price closed back above the trend line today so technically a short trade would have been stopped out. Will be keeping an eye on this throughout the week! Shaboo shabae, sometimes dis be da wae.
