As I predicted from my last post, SPX crashed, much sooner than I expected. I see many people talking about news and fundamentals, but to me, it's just TA. The set up is there, the downtrend is clear. All the news are just background noise.
If you have missed the last boat, there might be another chance in the next couple of weeks. My explanation of my logic behind the crash is all written on the graph. It should be quite straight-forward. In the next couple of weeks, I am expecting a retrace back to the price range of $2707.37 - $2665, and then another drop should ensue. If the drop ensues, I would expect the price to drop to $2541.1 - $2518.31. However, as a retrace of 0.786 of the current downtrend, from the ATH to the dip on the 6th Feb, has completed, this could mean that the correction has completed and consequently the reversal of the current downtrend. And this was the reason that I said it is a good time to take partial profits.
Depending on your risk/reward ratio, you can decide at which point you place your short positions.
This is for education purposes. Please trade rationally.
Taiwan Bear
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My last "crash" call:
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Hi all, if you have placed long positions since I told you that a retrace is happening, please watch out the price closely as a reversal can happen at any time. SPX is about to enter the re-short zone. Set up an alarm just in case.
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If you have already re-short, congratulations! You have just made yourself another 2% (1x leverage) within the last 12 hours. It will be a good time to take partial profits.
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SPX is now very volatile. Please be careful if you are going long. The safer option will be to wait until it rises to $2695+ if you are thinking of shorting.
Looks like this is just the beginning...I've read that the next coming months it will be a volatile market. Crypto was talked down about it and look at the stock market now lol.
I only invested about 250 with robinhood app and it's lost 30 dollars lol but at this point, I wonder if it will recover in the next few months? I'll be buying the dips of course
Taiwan_Bear
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@rudyae86, If you have a look of my first post on SPX, my ultimate shorting target is $2386
Taiwan_Bear
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@rudyae86, That is the long term trendline in which I believe the big players are taking their profits until that point.
Mungee
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Outstanding call! What site do you use for your forex trading? Is forex trading very different from crypto?
Taiwan_Bear
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@Mungee, Thank you :) The concept is the same as you can see. People used to talk about how volatile Cryptos market is but look at what happened now, everything just crashed. The big players are taking their profits after the long bull run. They are all manipulated markets from what I can see.
I only invested about 250 with robinhood app and it's lost 30 dollars lol but at this point, I wonder if it will recover in the next few months? I'll be buying the dips of course