Let's take a look at the S&P 500 chart. It is an index that accurately shows the financial health of the global economy.
Think back to the autumn of 2020, in just 30 days the market fell 30% and then recovered just as quickly, hitting new highs within a few months, enough time has passed since then. Was it a crisis, as many are calling it, or is it still ahead? That's a difficult question to answer, but let's try to check the index from the technical analysis side!
The S&P has been trading along its trend line for over a year now, and I would like to clearly show you that the market is running out of strength to continue rising. Each wave is getting smaller and smaller, price has already tested the trend line 5 times. How many more tests can it take?
If the S&P breaks the trend line, it might be a good opportunity for selling, it is safer to wait for another test of the trend line as resistance. Nearby liquidity zones that are likely to stop the price are marked below!
Write in the comments all your questions and instruments analysis of which you want to see.
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P.S. I personally will open entry if the price will show it according to my strategy. Always make your analysis before a trade
Great way to visualize the weakening trend! Also, theres a gap in the s&p around 4000, gaps always fill so we’ll definitely go back to the first supply zone. Once the big tech earnings are done we should be heading down.
I trade individual stocks, I use indices mostly to see the market direction.
Mihai_Iacob
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Excellent as always!
Yuriy_Bishko
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@OptimoomFX, Thanks, bro!
francisoconnell
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This trade appears active. Regards
InkyGrip
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Great analysis, thanks for sharing 🦐
CristoJarabaFX
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if this happen, we will see all markets crash. I'm more close to the idea that the negative narrative about an inminent crash has been rised exactly to trap bears. People is loosing more money shorting the market than ever. Thanks Yuri!! Cheers
InvestRegularlyandDiversify
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Yes sir, been in this since March 2020 rebound, feels like we're nearing the top of a VERY high cliff.
Super close to moving to cash for a bit, admit I'm watching for the right moment. Better to lock in gains or minimize damage than get crushed. Agree that a downturn is on the way. Bounce up after that I think