SPX500 seems to have resumed a larger degree Wave (3) lower towards 1750 since 2972 highs. The weekly chart displayed here shows the bigger picture and a potential Head and Shoulder reversal towards 1750 and lower. Earlier, SPX500 had broken below its neck line at 2345 and print lows around 2200 levels. The subsequent counter trend rally has also materialized as a corrective wave and managed to reach fibonacci 0.618 retracement of Wave (1) towards 2972 on April 30, 2020. Also, this region was marked as a potential Right Shoulder. At a lower degree, SPX500 is on its way to again carve a lower high around 2880/2900 levels either today or Monday before reversing lower again. Ideally, prices should stay below 3400 handle to keep the bearish structure intact.
Strategy:
Short against 3200 (ideally 3400), targeting below 1750.
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 3200 (ideally 3400), targeting below 1750.
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.