SPX500 weekly chart presented here indicates a resumption of down trend that had begun from 3400 levels in February 2020. The counter trend rally from sub 2000 levels might be close to terminating around 2900 levels. It is also close to fibonacci 0.618 retracement of the earlier drop Wave (1) on the chart. Also note that a Head & Shoulder reversal pattern is also in the making with potential Right Shoulder around 2900/50 handle. Watch out for a bearish reversal from above levels and a sharp decline towards 1700 and 1450 as Wave (3) progresses.
Strategy:
Short against 3400, targeting 1450
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Strategy:
Short against 3400, targeting 1450
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.