I believe it is time fro SPX500 to correct after a huge bounce. In my opinion we are living a Wave 1 in a bigger 3 in a bigger 5. So, bulls no need to worry: this is only a small step back before a huge advance.
My TP1 would be 2100 and TP2 at 2070. SL: 2210
Trade active
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Shorted 2204 as all divergences are in place now: Daily, 4H and 1H, it also hit a resistance line, drawn through previous historical maximums.
Closed my short on this today.... just too much momentum. Big money appears to be keeping the Stoch and RSI grinding in the middle of their charts and grinding the price higher without tipping to the oversold or overbought side, and every small pullback results in more money coming in. Even with a rate hike expected, oil heading down, and the dollar at historic highs. The upper channel at 2181 was breached and retested today, so if it's holding tomorrow at 10:30 I'm opening longs using 2170 as the SL and 2230 as the TP1 and 2300 as TP2 (1.272 extension of largest low-to-high). But if and when this turns south, I'm with you on this short!
captain_smollett
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@htgroup1, thank you for your feedback! Much appreciated as always =)
I think the Risk/Reward is quite good here and the 4H divergence is too nice to ignore... Divergences are there to be broken though =)
stantrader
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Can you explain what the divergence is?
captain_smollett
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@stantrader, hello, Sir! Please check 5his couple of links I post below. It has definitions and samples of bearish or bullish, normal or hidden divergences: