As you can see on the image the market now is testing the 1/2 Gann Fan. If the price had to broke this level the situation will become critical.
The 2540 level is important because if the price will go down the main trend for this market change from bull to bear.
In this case first target can be 2350 and i think i will go short. If the market reject this idea i will update my analysis trying to find new buy&sell points.
i would say the market will go down even if the Fed stop raising the interest rate for the moment.
LucaGhidinelli
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@EricCaodd, yes sure, in fact down price is my preferred scenario. But as a trader i've to consider every options
EricCaodd
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@LucaGhidinelli, the downfall of SPY and QQQ is very significant. I'd say I've expected some kind of support around 2540 level as you have in the first place, but it seems institution investors just want to run for life by trimming exposure in equity. Now that the major indices are on the brink of breaking major support, more selloff will take place in the near future.
LucaGhidinelli
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@EricCaodd, in this chart my idea of first support level
i expect the price around the 2350 where is placed my 1x2 gann fan. In my opinion next target from long term dipends on the reaction made by the price on this level.
Later i probably share a mid-term analysis based on weekly chart