There are some colors in the chart.
Two green and two orange. These are specific zones.
Above the green ones we are at extremely bullish area. If price goes down, tests the green lines and up again it shows renewed strength.
Below the green lines it is not negative but more short term analysis is needed.
And now the orange lines. Above them price remains in a long term bullish trend. Below them, the situation can become very dangerous.
So the SPX broke the green lines and is now testing the orange ones.
If you look below the chart, there are two more charts.
In blue the very short term Momentum is extremely oversold. This is just an indication.
When we add it with the chart that follows, where we can see that the red line has spiked it means a possible reaction for the SPX.
The red line shows the strength of the current move which of course is negative, it spiked and reached extremely overbought levels.
Therefore on a very short term basis I expect a reaction for the SPX but only that, just a reaction.
The overall move down has not finished yet.
Once the reaction ends, one more thrust to the downside should violate the orange lines.
This if it happens (that's my view), it will create Panic to the herd of investors.
That last push down will most probably be an opportunity to go long but we will discuss that in another update.
For now Capital preservation for investors and great times for Traders!
Two green and two orange. These are specific zones.
Above the green ones we are at extremely bullish area. If price goes down, tests the green lines and up again it shows renewed strength.
Below the green lines it is not negative but more short term analysis is needed.
And now the orange lines. Above them price remains in a long term bullish trend. Below them, the situation can become very dangerous.
So the SPX broke the green lines and is now testing the orange ones.
If you look below the chart, there are two more charts.
In blue the very short term Momentum is extremely oversold. This is just an indication.
When we add it with the chart that follows, where we can see that the red line has spiked it means a possible reaction for the SPX.
The red line shows the strength of the current move which of course is negative, it spiked and reached extremely overbought levels.
Therefore on a very short term basis I expect a reaction for the SPX but only that, just a reaction.
The overall move down has not finished yet.
Once the reaction ends, one more thrust to the downside should violate the orange lines.
This if it happens (that's my view), it will create Panic to the herd of investors.
That last push down will most probably be an opportunity to go long but we will discuss that in another update.
For now Capital preservation for investors and great times for Traders!