Dear traders,
For me, the S&P500 has reached a target that I see as important resistance. While the index was in 'repair mode' after the september correction, an ABC pattern evolved. This one seems to be near completion. That gives me the idea to see a smaller pullback towards 3400 points to see if this ABC can turn into a 5 wave impulse. If that's the case we can focus on higher highs for the index. In my view, if the 3400 will not hold, the index will go lower than the 3200 area we've seen in september.
I've drawn two simple scenario's on the chart, both focused on the 3400 area.
For now I remain slightly bearish, and as full disclosure I can tell you I have a couple of shorts on European indices but no positions on US indices.
Trade safe by always using stops.
Best regards from The Netherlands,
Daniel
For me, the S&P500 has reached a target that I see as important resistance. While the index was in 'repair mode' after the september correction, an ABC pattern evolved. This one seems to be near completion. That gives me the idea to see a smaller pullback towards 3400 points to see if this ABC can turn into a 5 wave impulse. If that's the case we can focus on higher highs for the index. In my view, if the 3400 will not hold, the index will go lower than the 3200 area we've seen in september.
I've drawn two simple scenario's on the chart, both focused on the 3400 area.
For now I remain slightly bearish, and as full disclosure I can tell you I have a couple of shorts on European indices but no positions on US indices.
Trade safe by always using stops.
Best regards from The Netherlands,
Daniel