supratimbarman

SPX Could Fall to 2550 to Test the 2009 TrendLine

Short
FX:SPX500   S&P 500 Index
The SPX is ranging within a Downward Sloping Bearish Wedge that is within strong resistance at 2940 and support at 2820.

IF, the wedge were to break, the SPX could fall to 2550, which is the 2009 BullRun TrendLine.

SPX has already broken thru the Dec18 low TrendLine and has fallen off ATH at 3020 and is just above the 200day MA at 2800.

Comments

Check out google trends and enter recession as a term. Interest in recession is sky high, similar to 2008 which was a predictor of recession.
I think the market will fall down through wedge or rectangle soon. Yes, 2550 could be a target to aim for. A DCF valuation using 4.5% growth rate in earnings and 8.2% discount rate gives a S&P500 valuation of 2700. It could be lower in a recessionary situation. Be careful of volume on TV charts, it represents CFDs traded. Picture could be different for actual shares traded or futures traded.
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@victorko, Thank you very much. I am glad you see this the same way. I see danger coming up the road. Could I ask you, where would I see the actual volume. My trading platform does not give me the volume either. Victor, I very much enjoy your comments and insights and give them much respect and priority. Thank you again.
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victorko supratimbarman
@supratimbarman, Check the actual share volume of ETFs like SPY, QQQ and IWM on Trading View. These are the main ETFs covering the market. I think this volume is more reliable than CFD volume.
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