InvestMate|S&P500 Return of pessimism📉

📉S&P500 Return of pessimism

📉In the current post I will expand on my perspective I presented last time, link to the post below:

📉This time, from a slightly closer perspective, I will try to give you an idea of where I think the nearest significant support levels are and what size the coming correction might be.

📉 I will present in turn all the tools I have used in the analysis.

📉 I will start, as always, with the downward channel we are currently in. Since Friday we have had an apparent problem with the continuation of the uptrend. Which again reinforces the fact that we will soon see a rally in price in order to make a correction, and to find where the buyers may be.

📉 Next, I measured the entire uptrend impulse from the bottom to the current peak using a grid of fibo levels. In order to find interesting support levels.

📉 Then I measured the current upward impulse we made after a significant correction.

📉 I measured the extent of the largest downward correction in the entire upward impulse in order to determine a 1:1 projection of this wave.

📉 Using the measurements mentioned above, I determined a support zone which was based on the 0.382 level of the entire upward wave from the bottom, the 0.618 level of the entire current upward impulse after the correction, and the 1:1 level of the largest correction in the uptrend.

📉 The scenario I am playing out is to execute a correction to the support zone I've set.

📉 The correction would be -5.31% counting from the peak.

📉*Please do not suggest the path I have drawn with the lines this is only a hypothetical scenario for further increases.

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