SPX
SPX
A potential bullish Cypher pattern was spotted. There are 3 major support areas: 2322, 2334, 2336. The most likely candidates are 2334 and 2336. A retest of 2322 is also possible if the panic continues from April 5th's trading session, which saw a 28-point decline just after 2pm due to the FOMC Minutes release. A strong throwback below 2322 is very bearish and in that case it's probably best to stay away until markets calm down and provide a sense of direction. As mentioned previously, I believe the 2334/2336 support areas are the likely candidates for a bullish rebound. A stop loss around 2330 may be a good area to jump out. Nice profit objectives would be the 0.236/0.382/0.50 Fib. ratios. I don't think the index will move past those profit levels unless there is some sort of amazing news release. Personally, I would take the 2346 level as the primary objective for the short-term.
However, if the stop loss is hit, then look out for the major 2322 support retest and consider a possible entry there with another stop loss around 2316. Use the same Fib. ratios as mentioned before for profit levels.
Comment:
Another interpretation as a bullish Shark pattern converging in proximity of the Cypher.
