SPX500 weekly chart suggests that the indice might be ready to resume towards 1750 and beyond as Wave (3) unfolds. The indice had dropped over 2% yesterday from 2945 highs and this might be the resumption of the down trend. On the flip side, SPX500 may attempt a marginal high above 2954 levels, before giving in to bears. Either way, the indice is expected to either continue dropping from current levels or from close to 3000 handle. The larger structure also reveals a Head and Shoulder reversal pattern in the making as labelled on the chart here. The neckline was broken earlier at 2345 levels already, and a potential right shoulder seems to be in place around 2950/70 handle. A drop below 2800 interim support would confirm a bearish reversal and SPX500 would accelerate lower, going further. Overall bearish structure remains intact until prices stay below 3400 mark.
Strategy:
Short against 3200 (ideally 3400), targeting below 1750.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.
Strategy:
Short against 3200 (ideally 3400), targeting below 1750.
Legal Disclaimer: This article is not investment advice. The data provided is for marketing material purposes and is not intended to confuse nor guide our clients on trading decisions. Any investment activity performed is perceived to be a self-directed decision. Exclusive Markets is not liable for losses that may occur because of a decision made after reading the information published on our research page or any other media.
Risk Warning: Trading the capital markets is risky therefore further knowledge and experience may be required. Apply appropriate risk and money management always and ensure the implementation of safe leverage.