The S&P500 tanked violating previous support in December, bringing the trend in a bearish rotation. After making new lows, we are observing a potential outside return, testing previous structure support that potentially might act as resistance. This bias indicates an advanced pattern, an equal measured move (AB=CD) with Fibonacci confluence aligning with major structure. With this in mind, I believe we have a high probability for a pullback in the market.
Target is set to previous outside return and stop loss is set to a 1.13 Fibonacci inversion from A to X of the Bat pattern.
Trade closed: target reached
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Psychological Stop loss reached, will close position at a daily candle close above the 1.13 Fibonacci level.