• Dow pattern- lower tops and lower bottoms (T1-B1-T2-B2).
• Price is currently trading BELOW the downtrend line.
Prices are trading above the at 1930.0.
• is below the equilibrium level 50. momentum.
We should take under consideration that prices are below the SMA200 and the 2042.0 we will consider short positions.
1. In case of a daily close below the at 1930.0:
We will recommend SHORT POSITIONS for the no position holders on S&P 500 . Take profit.1 at 1904.0 and take profit.2 at 1830.0. Stop loss should be a bit above the at 1930.0, thus the stop loss is at 1942.0-1960.0.
For Short-holders we will recommend to HOLD their short positions and adopt the same stop loss and take profit orders as mentioned above.
2. In case of a move above the at 2000.0-2020.0 (R1), we will recommend long positions.