if it is not obvious by now that SPX reached its peak and it is in its right now to go down for some retracement. Taking into account all whats happening at the moment, from covid, stimulus inflation, etc, it's unrealistic whats SPX has reached the last couple of months with its parabolic move. This is unhealthy and not sustainable in the long run. So a proper correction is imminent for SPX to uphold its strength and continuous growth.
SPX has been trading in rising wedges, from top-down timeframes. The first rising wedge on the smaller timeframe has been broken today, however, with SPX strength at the moment, shorting seems to be a nerve-wracking issue. I have indicated the major zones and levels from SPX lifespan on the weekly. As well, I have done my best to identify the patterns that SPX traded in their support and resistance lines which are helpful when these comes into play later.
Although, I still believe that SPX will hit higher for the last time before going down. Either as a false breakout or to collect orders and stop some others.
LucyF2492
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Didn't anyone tell you that the market can remain irrational longer than you can remain solvent?
Mamou-Q
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@LucyF2492, I hear it from you now, and I totally agree. However, to make a career in this business, we can only assume things based on our analysis and looks of charts, as we are all speculators after all. Yet being solvent in my own trading action is crucial to be able to succeed among these irrational markets.
LucyF2492
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@Mamou-Q, Calling for a "definitive peak" is the opposite of good trading. You have to react to the market conditions, not try to predict the trend changing.
Mamou-Q
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@LucyF2492, well obviously you can see market conditions better than others. Market conditions are as sh**ty as it has never been, and markets are rising in a parabolic way, ignoring all divergences and other factors that only indicate inflation and depletion. We dont do anything else than predicting the next move of the market based on our analysis. It's my own right to call it definitive peak when I believe it is. (look at the chart since the moment this analysis was posted and tell me if my definitive peak was the "the opposite of good trading"! I trust my own analysis than anyone else's and that what makes me a consistently profitable trader. Maybe you should do your homework.
candlestickninja
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holding above your top level which is also a 1.618 extension, once 4140 breaks it's on