Are we rushing into the possible next Big Short?
Is S&P 500 about to “CRASH”?
Are we rushing into the possible next Big Short?
So the S&P 500 futures contracts are depreciating in value, yes. Yet we foresaw this series of events. Has it been a rapid decline? No.
The Price Action and structure continues sound.
There is no sign yet of panic or rapid selling signaling the Risk Off scenario all are predicting.
Do I expect further downside? Yes
I will go into my reasoning
1. DXY following a Bullish structure. Currently consolidating in a Bullish Flag pattern that could give us a break out of this pattern with a Higher High soon.
1. With a Bullish Dollar we can expect Bearish Equities.
Lets break ES pice action from top down.
- Monthly
- ES offered a Lower Low from June 23 Lows. But I am looking at the Monthly with caution since the month of October is not over yet.
- Weekly
- ES made its third down leg and yet it was unable to create a Lower Low in comparison to the week of October 2nd 23.
- The down closed weekly candle of last week looks strong enough to take out this low on momentum alone.
- So it is possible we will see 4235.5 before any other move.
-
- Daily
- On the Daily we see the last 4 Bearish days in a row, it can be assumed that the Bearish momentum along could carry price further down to establish a new Lower Low on this Bearish trend which will be at 4235.50
- I also like the potential of 4218.75
In conclusion. I do expect to see further downside but I would like to remind all that this will be the last week of October and to top that we are getting very close to establishing a new Lower Low on this Trend.
What does that mean?
Well we have had and extended leg down on this trend throughout the month of October. I would expect a retracement after a new Low is stablished with a subsequent bounce to settle a possible Lower High on this trend.
To accompany this thought it is the end of the Month and expecting a bit of retracemnt from the Monthly direction is healthy.
If you look at the Daily chart you will notice a gap between Thursday Oct 19,23
And Friday oct 20, 23. I am expecting price to target this Gap once the lows are stablished.
Still always follow price it will never steer you wrong.
Are we rushing into the possible next Big Short?
So the S&P 500 futures contracts are depreciating in value, yes. Yet we foresaw this series of events. Has it been a rapid decline? No.
The Price Action and structure continues sound.
There is no sign yet of panic or rapid selling signaling the Risk Off scenario all are predicting.
Do I expect further downside? Yes
I will go into my reasoning
1. DXY following a Bullish structure. Currently consolidating in a Bullish Flag pattern that could give us a break out of this pattern with a Higher High soon.
1. With a Bullish Dollar we can expect Bearish Equities.
Lets break ES pice action from top down.
- Monthly
- ES offered a Lower Low from June 23 Lows. But I am looking at the Monthly with caution since the month of October is not over yet.
- Weekly
- ES made its third down leg and yet it was unable to create a Lower Low in comparison to the week of October 2nd 23.
- The down closed weekly candle of last week looks strong enough to take out this low on momentum alone.
- So it is possible we will see 4235.5 before any other move.
-
- Daily
- On the Daily we see the last 4 Bearish days in a row, it can be assumed that the Bearish momentum along could carry price further down to establish a new Lower Low on this Bearish trend which will be at 4235.50
- I also like the potential of 4218.75
In conclusion. I do expect to see further downside but I would like to remind all that this will be the last week of October and to top that we are getting very close to establishing a new Lower Low on this Trend.
What does that mean?
Well we have had and extended leg down on this trend throughout the month of October. I would expect a retracement after a new Low is stablished with a subsequent bounce to settle a possible Lower High on this trend.
To accompany this thought it is the end of the Month and expecting a bit of retracemnt from the Monthly direction is healthy.
If you look at the Daily chart you will notice a gap between Thursday Oct 19,23
And Friday oct 20, 23. I am expecting price to target this Gap once the lows are stablished.
Still always follow price it will never steer you wrong.
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