1. If SPX breaks the downward intermediate trend above 0.618, we will probably see a Head and Shoulders formation. This would break the 0.382 retracement and crossing the Ichimoku cloud at the same time. Hence, trigger a rally.
2. Otherwise, we will see a Death Cross and a continuation of the sell off towards the support. A break of the intermediate trend below 0.618 would not favour the Head and Shoulders formation.
2. Otherwise, we will see a Death Cross and a continuation of the sell off towards the support. A break of the intermediate trend below 0.618 would not favour the Head and Shoulders formation.