SPX looking ready to roll over back to downside as bear market bullish correction is about played out.
Volume profile indicates downside conviction on initial dump down from Feb-March, with increasing volume on the down move, then declining volume on the upward correction currently playing out.
Price action is currently at the top of a rising/ascending wedge, right near the point where one might expect the break of wedge support confirming the sell signal, assuming a daily close below the bottom of rising/ascending wedge pattern's support line. The top of the wedge is further capped by the 61.8% Fibo retracement level from the Feb-March downside move/dump.
Initial target: just above the recent March low - around 2,225 - with additional downside targets around 2,000 and again near 1,850.
Stop above the 61.8% Fibo, around 2,933/55 zone (given market's propensity for volatility at present evidenced by elevated VIX levels, it may be prudent to keep a wide stop closer to the 2,955 area just to be sure).
Initial Reward-Risk Ratio in area of about 2:1.
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Please note: the above is merely a description of personal preference re: this trading setup and in no way constitutes advice of any kind. Info provided is for educational and/or entertainment purposes only and is not intended to be held out or construed as any kind of professional opinion in any way shape or form; rather, merely a non-professional, non-licensed, amateur description of a personal trade for personal purposes. Different people have different risk tolerances and objectives, and as a result, you should not take action on anything disseminated herein. If you wish to risk your own capital in the capital markets, see an appropriate investment professional licensed in your jurisdiction.
Volume profile indicates downside conviction on initial dump down from Feb-March, with increasing volume on the down move, then declining volume on the upward correction currently playing out.
Price action is currently at the top of a rising/ascending wedge, right near the point where one might expect the break of wedge support confirming the sell signal, assuming a daily close below the bottom of rising/ascending wedge pattern's support line. The top of the wedge is further capped by the 61.8% Fibo retracement level from the Feb-March downside move/dump.
Initial target: just above the recent March low - around 2,225 - with additional downside targets around 2,000 and again near 1,850.
Stop above the 61.8% Fibo, around 2,933/55 zone (given market's propensity for volatility at present evidenced by elevated VIX levels, it may be prudent to keep a wide stop closer to the 2,955 area just to be sure).
Initial Reward-Risk Ratio in area of about 2:1.
---
Please note: the above is merely a description of personal preference re: this trading setup and in no way constitutes advice of any kind. Info provided is for educational and/or entertainment purposes only and is not intended to be held out or construed as any kind of professional opinion in any way shape or form; rather, merely a non-professional, non-licensed, amateur description of a personal trade for personal purposes. Different people have different risk tolerances and objectives, and as a result, you should not take action on anything disseminated herein. If you wish to risk your own capital in the capital markets, see an appropriate investment professional licensed in your jurisdiction.