S&P500 - Consolidation Confirming More Downside
The S&P500 index is currently in the process of ultimating an "abc" corrective structure. If we are right about our structure analysis, this is important information, as it would be the confirmation for more downside, indicating a great trading opportunity with optimized R/R ratio.
More in detail, the
SPX500USD
had an impulse to the downside, on the 4h timeframe. Said impulse was then followed by a series of movements which structurally speaking indicating a sideways correction in the shape of a more or less regular flat.
Hence, from this moment onwards, we will be looking for sell setups. The pair has already broken the top at "a" as well as the trend of the aforementioned correction to the upside, therefore it could just drop from where it is currently. However, there is still a chance, on the 60min timeframe, if you double check the divergence on that timeframe, that the pair will go for one more upwards movement to slightly break the top at "c", just to drop right after that.
In terms of potential targets, we are looking at a movement that will almost certainly take the price to the lower trend line of the now "abc" correction, then we'll see: depending on how it gets there and how fast it gets there we will know if it will break through or go for one more up within the correction. Nonetheless, a great short opportunity for the coming days.
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.
More in detail, the
SPX500USD
had an impulse to the downside, on the 4h timeframe. Said impulse was then followed by a series of movements which structurally speaking indicating a sideways correction in the shape of a more or less regular flat. Hence, from this moment onwards, we will be looking for sell setups. The pair has already broken the top at "a" as well as the trend of the aforementioned correction to the upside, therefore it could just drop from where it is currently. However, there is still a chance, on the 60min timeframe, if you double check the divergence on that timeframe, that the pair will go for one more upwards movement to slightly break the top at "c", just to drop right after that.
In terms of potential targets, we are looking at a movement that will almost certainly take the price to the lower trend line of the now "abc" correction, then we'll see: depending on how it gets there and how fast it gets there we will know if it will break through or go for one more up within the correction. Nonetheless, a great short opportunity for the coming days.
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.