A few days ago I posted my bearish opinion about the s&p500. we already started to see then the bear power around 2950. in addition, more bad news are coming from spike in new covid 19 cases to consumers that are not felling confident enough to spend money just yet. consumer spending is one of the most important factors to go back on track. if I combine my bearish outlook about the future of our economy ( more people will probably lose their jobs, businesses will close their doors permanently ) with technical analysis, it looks like the bears came out from the woods and ready to give us a very bloody summer.
bearish scenario:
- Double top( DT) around 61.8% fibo.
- Bearish engulfing pattern.
- Closed under 20 EMA.
- High volume on bloody days.
- Rsi : pointing down and under 50
This scenario can take us to 2700 level as first target and lower to the last lows of march around 2200.
Bullish scenario:
- break and close above 2950 will send the bears to an early winter vacation.
This scenario can take us to 3100 as first target to the all time highs around 3500.
Neutral scenario:
We can trade in range for a while between 2800-2950 .
stay tuned for more updates!!
bearish scenario:
- Double top( DT) around 61.8% fibo.
- Bearish engulfing pattern.
- Closed under 20 EMA.
- High volume on bloody days.
- Rsi : pointing down and under 50
This scenario can take us to 2700 level as first target and lower to the last lows of march around 2200.
Bullish scenario:
- break and close above 2950 will send the bears to an early winter vacation.
This scenario can take us to 3100 as first target to the all time highs around 3500.
Neutral scenario:
We can trade in range for a while between 2800-2950 .
stay tuned for more updates!!
Comment:
It looks like we will trade in range between 2800-2950 for now. Only a breakout will clear the path for more significant movements. So we will move to neutral for now.