End of Bullish Supertrend? Journey from Support to Support
Dear Esteemed Members,
The supertrend was bullish, but two sell signals concluded with a bearish price action.
The rejections happened around the resistance level from a previous top.
The price is now below the upper green support level.
I think the S&P 500 market will reach the next support level: around $4600.
So, I'd consider a short position. You can target the bottom support level of $4600, but keep a stop loss if the market reverses from the proximity of the violated support level.
You can observe a similar setup on my yesterday ES analytics, where I explained a bearish MACD, RSI, BBP, and MFI.
Kind regards,
Ely
The supertrend was bullish, but two sell signals concluded with a bearish price action.
The rejections happened around the resistance level from a previous top.
The price is now below the upper green support level.
I think the S&P 500 market will reach the next support level: around $4600.
So, I'd consider a short position. You can target the bottom support level of $4600, but keep a stop loss if the market reverses from the proximity of the violated support level.
You can observe a similar setup on my yesterday ES analytics, where I explained a bearish MACD, RSI, BBP, and MFI.
Kind regards,
Ely
Comment:
The S&P 500 companies have been reporting strong earnings growth in 2023, boosted by the recovery from the pandemic and the fiscal stimulus. However, the earnings growth is likely to slow down in 2024, as the base effects fade and the cost pressures increase. According to FactSet, the consensus estimate for the S&P 500 earnings growth in 2024 is 9.4%, down from 45.8% in 2023. The earnings growth could also be revised lower if the economic conditions worsen or the corporate taxes increase.
Comment:
The price action is surprisingly bullish, but fundamentals set a significant bearish probability. Logically, I'd speculate on a dump, but I wouldn't go all-in on this trade.
