S&P500 - Daily Timeframe - Short Opportunity
Following our previous analysis on the S&P500 index of listed shares (www.tradingview.com/...e-bigger-correction/), we have been monitoring the index closely in its movements as it ultimately broke the weekly high around 2877. What seemed a first attempt to the downside was followed by an identical attempt, marking a running flat pattern (which we have drawn in purple). At which point we knew the index was going to go for another upside swing which would have certainly broke the temporary top of the structure (right after marked "b" of the minor corrective running flat), and could have potentially broken the weekly high, which it did in the last sessions.
That however, does not change the fact that the current movement is not part of the monthly uptrend to the upside, but a B wave of a big corrective structure, which will have to complete itself with a C wave to the downside. It is this movement that we are still expecting any moment now, that represents our key profit opportunity and will take the price most probably towards the 2680 area, more or less.
After, the index will go for another upside movement, but we believe the correction will most probably not be over as yet and the index will have more up and downs before resuming the main monthly uptrend. But that is many months ahead and what is important now, really, is the completion of the C wave of the current corrective structure and the relative short opportunities that come with it.
From this moment on again, we will be looking for sell setups on this index. Updates on minor timeframes will follow.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.
That however, does not change the fact that the current movement is not part of the monthly uptrend to the upside, but a B wave of a big corrective structure, which will have to complete itself with a C wave to the downside. It is this movement that we are still expecting any moment now, that represents our key profit opportunity and will take the price most probably towards the 2680 area, more or less.
After, the index will go for another upside movement, but we believe the correction will most probably not be over as yet and the index will have more up and downs before resuming the main monthly uptrend. But that is many months ahead and what is important now, really, is the completion of the C wave of the current corrective structure and the relative short opportunities that come with it.
From this moment on again, we will be looking for sell setups on this index. Updates on minor timeframes will follow.
If you feel that our analyses and views may be a useful complement to your trading strategies and in order to be notified in real time with our updates on the lower timeframes, please remember to click on the Follow button.
Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
Thank you for viewing.
Comment:
Watch it carefully now. It seems like it will make another high but this is possibly the last one for real now. Look for sell setups or put sell orders on the break of the last minor trends:
Comment:
After several new highs on the smaller timeframes, seems like we found the completion of our B wave:
Comment:
Seeing the microstructure in the 60min chart, there is a chance for one more up to slightly break the top one last time before the fall. We have circled the corrective pattern in the making to clarify. Please note that there is divergence on all timeframes, so an expected deep move on the daily timeframe is bound to happen anytime now.
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.