So, the idea of a channel that would lead to the 3350 level did not work out.
Ignoring the bearish divergence, the SPX pump to the August 2022 level and closed
the week with a shooting start at ~4300 level.
The Cluster Algorithm reports that there is overbought on the 1D, 2D, 3D, 5D and also 1W timeframes.
But it may take another 1-2 weeks before it is fully formed on the 5D and 1W charts.
The 9 seasons have produced a yellow-lime titer,
which indicates that the possible options are both a breakout and a pullback.
Quote:
"Resistance / Overbought (Yellow): a resistance area, may become a Top, or be broken through.
Crazy Bought (Lime): Price is going up in a high volatility, could be a valid breakout, or a Bull Trap."
Considering that the overbought is already there, I would treat this data as a signal of a bull trap.
The Ichimoku cloud has this shape, which also confirms the probability of both options.
In fact, the possibility of a reversal is indicated only by the candle.
A breakdown of the level did not happen.
And the last is a pullback to the level 0.618.
If a correction happens, we should expect 0.382 at about 4000 to start with.
Ignoring the bearish divergence, the SPX pump to the August 2022 level and closed
the week with a shooting start at ~4300 level.
The Cluster Algorithm reports that there is overbought on the 1D, 2D, 3D, 5D and also 1W timeframes.
But it may take another 1-2 weeks before it is fully formed on the 5D and 1W charts.
The 9 seasons have produced a yellow-lime titer,
which indicates that the possible options are both a breakout and a pullback.
Quote:
"Resistance / Overbought (Yellow): a resistance area, may become a Top, or be broken through.
Crazy Bought (Lime): Price is going up in a high volatility, could be a valid breakout, or a Bull Trap."
Considering that the overbought is already there, I would treat this data as a signal of a bull trap.
The Ichimoku cloud has this shape, which also confirms the probability of both options.
In fact, the possibility of a reversal is indicated only by the candle.
A breakdown of the level did not happen.
And the last is a pullback to the level 0.618.
If a correction happens, we should expect 0.382 at about 4000 to start with.