On the longer term S&P500 analysis posted last week, I set the expectation that there would be a solid drop in the index this year, but not before a corrective recovery to the upside.
Taking a closer look in the 4HR timeframe, this is my roadmap.
The yellow box indicates the 100% to 161.8% extension from waves A-B. It is a common target for extensions, and I expect a lot of resistance in that zone. This would also be the 50-61.8% pullback zone, also an area of interest.
You may be right. This can be the start of a whole new move.
TradingShot
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Strong setup. We outline our expectations below:
Tradersweekly
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We are pretty bearish on our end. Let's see how it plays out. Thanks for sharing.
Stoic-Trader
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@Tradersweekly, I´m also bearish (my longer term analysis shows the index going down to at least 3000).... but I always expect the market to trick people into going long before a strong drop. 😉
Tradersweekly
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@Stoic-Trader, Thanks for your feedback and explanation.