The bears have entered the stage - waiting for retracement
SPX has shown it’s bearish strength last 2 days. We went from the 2950 levels - where SPX was battling with the previous high, the Weekly 100 EMA and the Daily 50 EMA – to a new local low of 2765. One can see that the impulse with which the market went down was very convincing.
However, market did not accept the low and traded up super strong after the low was set, showing bullish strength.
Showing this kind of strength, I believe we should rally up again, but I think setting new high’s will be tough.
A good plan of action for me is to keep a good eye on the battle around 2870 (Weekly 100 EMA), and the 2900 (Daily 100 EMA, psychological level). Since new low’s suggest weakness, setting new high’s is not impossible but unlikely.
Good entry strategy could be to sell at 2900 or slightly above with stop loss at 2980. New high would invalidate the bearishness, thus invalidating your short.
First target should be the blue box at mid 2600 levels, where we have 0.382 Fib retracement, Weekly 100EMA and previous S/R level. Note 2725 could be a support too. Note though that drifting away to much lower levels than 2650 is definitely possible when 2650 level is reached since bearish trend would be confirmed.
However, market did not accept the low and traded up super strong after the low was set, showing bullish strength.
Showing this kind of strength, I believe we should rally up again, but I think setting new high’s will be tough.
A good plan of action for me is to keep a good eye on the battle around 2870 (Weekly 100 EMA), and the 2900 (Daily 100 EMA, psychological level). Since new low’s suggest weakness, setting new high’s is not impossible but unlikely.
Good entry strategy could be to sell at 2900 or slightly above with stop loss at 2980. New high would invalidate the bearishness, thus invalidating your short.
First target should be the blue box at mid 2600 levels, where we have 0.382 Fib retracement, Weekly 100EMA and previous S/R level. Note 2725 could be a support too. Note though that drifting away to much lower levels than 2650 is definitely possible when 2650 level is reached since bearish trend would be confirmed.
Comment:
At the moment it seems SPX gets rejected by Weekly 100 EMA and the falling trendline. Let's see how much bulls can push it up before we get in.
Comment:
Approaching 2900. Don't sell yet. This market is bullish in it's trend and has bullish momentum at the moment. Very lkely we will test 2930-2950 level. The hanging orange resistance trendline could be a good level where market reverses.