Here is a good example of a wedge break out and a pullback to form a lower high for an entry short. When we take a look at spx500, the daily chart has been over extended to the upside for a while now. Right now we are seeing a potential daily pullback in the making. When we drop down to the 4 hr chart, we see a nice price action pattern developped, and the bearish momentum is coming in.
We can short the SPX500 down to the intraday fib levels of 61.80%, 2400.00 for a descent risk/reward trade.
Thanks for the great post. Do you think target this week is 2400 or are you expecting a bigger drop?
jojofang0901
⋅
@BAB75, I am anticipating a bigger drop as we know major index funds are due for a big correction. This may be the start of it. I will monitor if the price action has sharp drops to decide whether to hold this for long term or not.
BAB75
⋅
@jojofang0901, thanks for the update and thoughts... futures this morning are up so maybe it will rebound back up before anymore falls... tonight shall be interesting..