Are we at a S&P market top? Big picture view suggests yes.
This 2W candle looks like it marks a turning point in the stock market. I often use Heikin Ashi candles to see when trend reversals are happening on larger timeframes and we seem to be getting our first red candle since 2020. What's notable about this candle compared to the two that we had previously is that the body of it suggests a trend change and not a pause in momentum.
If I had to take a guess on what happens here, it's that we find support at the blue line and move sideways for the next month until the next two week pivot at the end of October 2021. Then I think the market is likely to correct from November onwards.
The trigger will be us losing support at the top blue line which will signal a further downfall. I'm exercising caution here and will likely be moving into cash over the next month or so. Of course, we'll have to see how the chart plays out with time and this is really just to provide a macro view. I've provided dates of key dates to watch on the charts and levels of support on the way down if we were to lose that top blue trend line as support.
If I had to take a guess on what happens here, it's that we find support at the blue line and move sideways for the next month until the next two week pivot at the end of October 2021. Then I think the market is likely to correct from November onwards.
The trigger will be us losing support at the top blue line which will signal a further downfall. I'm exercising caution here and will likely be moving into cash over the next month or so. Of course, we'll have to see how the chart plays out with time and this is really just to provide a macro view. I've provided dates of key dates to watch on the charts and levels of support on the way down if we were to lose that top blue trend line as support.
Comment:
Support found at the trendline, however, I lean towards a continued move down to the $372 support.