EW Analysis :
SPX500 is in pullback mode from lows of 2340 and is showing a clear abc pattern on upside.
EMA 50 :
SPX500 is now closer to 50 EMA level of 2685 which is also 50 % fib level from recent lows.
Long above 2820 on Daily close !
Short below 2630 on Daily close !
Keep in mind that the uptrend was broken and bulls are still not in mood to give up and fed is reducing its balance sheet even if it does not hike rates, that is a much bigger problem for markets than hikes.
Fed Balance Sheet Reduction = Removal of Liquidity
Removal of Liquidity = Hike in rates
And too much liquidity tightening would lead correction in markets !!
SPX500 is in pullback mode from lows of 2340 and is showing a clear abc pattern on upside.
EMA 50 :
SPX500 is now closer to 50 EMA level of 2685 which is also 50 % fib level from recent lows.
Long above 2820 on Daily close !
Short below 2630 on Daily close !
Keep in mind that the uptrend was broken and bulls are still not in mood to give up and fed is reducing its balance sheet even if it does not hike rates, that is a much bigger problem for markets than hikes.
Fed Balance Sheet Reduction = Removal of Liquidity
Removal of Liquidity = Hike in rates
And too much liquidity tightening would lead correction in markets !!
Trade active:
Short SPX500 at 2655 with sl @ 10 points ( 2644 ) or close above Supertrend on hourly !!
