grenadetrade

$SPX retrace back to neckline (headfake)

Short
SP:SPX   S&P 500 Index
After my last post of a bearish harami, the markets rallied to the upside, retracing back to the neckling support of the Head and Shoulders pattern formed on the SPX . While it seemed to have potential for a multiday rally, that was quickly erased by the dismal retail data on Wednesday and back to bear mode by the markets on inflation and growth concerns. For some this may have been a headfake, but i think selling in to rallies is the call of the day unless otherwise proven to have seen some sort of a bottom or a meaningful bounce.

SPX target remains at 3500 - another 10% down from this point. I don't think we'll see a bounce until this level is visited. RSI is oversold but it's got some room to go. SPX is now below the 100 week moving average as well - haven't been below this MA since March 2020. Very bearish .

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