SP500: 2740 Possible for Monday with Final Relief Rally
With a parabolically escalating trade war between USA-China and no 100% confirmation on rate cuts until September I strongly believe we can expect another day of extreme down-risk pressure where the S&P will plummet to about 2740.
I believe Tuesday and maybe Wednesday we will be slightly bullish and combine for a 1-2 day relief rally before a strong impulse bear market down to December lows at-least, by the Fall.
I believe this relief rally won't actually get us to the important 2840, but will rather be a fake-out to the upside and fall short. The relief rally will probably come as a result of some fake news on the back of how the increasing trade war might get a September rate cut.
Its possible we don't get much of a relief rally at all, but rather, it stops only slightly to the upside (hence the yellow line). Right now I am 50-50 on which path we will go.
Monitor Sunday and Monday trading carefully. If we fall below 2740 the risk of a relief rally of any decent gains is very small.
Target (Monday) - 2740
Target (Tuesday) Relief Rally / Fake Bull - 2800
Then Bear Market Possible
- zSplit
I believe Tuesday and maybe Wednesday we will be slightly bullish and combine for a 1-2 day relief rally before a strong impulse bear market down to December lows at-least, by the Fall.
I believe this relief rally won't actually get us to the important 2840, but will rather be a fake-out to the upside and fall short. The relief rally will probably come as a result of some fake news on the back of how the increasing trade war might get a September rate cut.
Its possible we don't get much of a relief rally at all, but rather, it stops only slightly to the upside (hence the yellow line). Right now I am 50-50 on which path we will go.
Monitor Sunday and Monday trading carefully. If we fall below 2740 the risk of a relief rally of any decent gains is very small.
Target (Monday) - 2740
Target (Tuesday) Relief Rally / Fake Bull - 2800
Then Bear Market Possible
- zSplit
Haven’t we heard this fake story 50 times already? Well it’s a good way to trigger the algo bots.
For this reason, people must be very careful in this market as Trump shows he loves illegal stock market manipulation.
My advice is don’t read into these future bounces as they are intended to trap people. Don’t put in huge long or short entries.
Watch the bond market closely as bonds don’t respond as “fakely” as futures to fake news.