S&P500 is trading in a long-term bearish trend. The market started a correctional movement, in the middle of October. The index was steadily growing within a rising wedge pattern.
This week, its support went broken. I believe that it may trigger a trend-following movement.
Next supports: 3666 / 3587
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@VasilyTrader, the tough question is at which price point are we going to short? it seems SPX will rebounce a bit to 3750 before dropping. your target points make sense as they are fibo support levels. thanks for sharing your ideas
Bill_Howell
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@VasilyTrader, My gut feel - slightly bearish for next couple of months UNLESS Fed pivots : 1) bearish factors - resumption of Aug-Oct down-trend?, Fed stated intentions for (rates, balance sheet), huge (debt, deficit)s 2) bullish factors - tons of cash itching to do something in high inflation period, more cash from continuing bond massacre, buy-on-dip still strong PLUS investors still in covid-era super-market boom mindset (revenge catch-up), (Fed, Treasury) won't let market collapse - must buy election 3) neutral factors - earnings neutral, foreign investors flight-to-safety may be over? (unless they realy crash) - India especially!, we are still on 1871-2022 SPX exponential trendline (Mark Hulbert), and 1926-2022 semi-log trend (Howell)
Bill_Howell
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@Bill_Howell, oops, I missed - FAANG fallout, except Apple! This will really force some thinking for many who thought they were ligving in moated castles.
JoeChampion
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Looks a good pattern to rely on, thanks!
SignalProvider
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Agree with you!
giotaylor1000
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Interesting and agree for the short term but I’m long across a number of indices but for the mid-long term. Good luck all