I have reason to believe that S&P is extremely overbought, and the price does not accurately or efficiently reflect the actual situation of the markets, especially with the BREXIT and the immediate and future consequences and uncertainty that come with. Besides this, profit taking is likely to occur at such a high area (all-time high), which could trigger some panic and possibly a sell-off.
From a technical perspective:
As well as this, there is strong resistance at this area, along with declining voluming and a lard head and shoulders pattern forming with the magnitude of corrections (10% declines and increases), which indicates that prices are likely to decline dramatically in the event of the neckline break at 1,850 which could possibly take us down 1,608 or lower.
In addition, there also seems to be some considerable negative divergence and momentum has deteriorated in the past 3 months.
I believe we should focus on the 2100 key level, and if it closes under it this week, I think the S&P decline.
From a technical perspective:
As well as this, there is strong resistance at this area, along with declining voluming and a lard head and shoulders pattern forming with the magnitude of corrections (10% declines and increases), which indicates that prices are likely to decline dramatically in the event of the neckline break at 1,850 which could possibly take us down 1,608 or lower.
In addition, there also seems to be some considerable negative divergence and momentum has deteriorated in the past 3 months.
I believe we should focus on the 2100 key level, and if it closes under it this week, I think the S&P decline.
Comment:
Reached Stop loss but didn't close, increased stop loss limit, still good RR.