This chart is a continuation of my previous one on the Head & Shoulders pattern that SPX is making. I added 2 zones to help me focus on the potential reversal spots.
The green/long zone: there are still 3 weeks left for the month of December and the outlook is very bearish. As such, I think the market will continue to sell for the next 2 weeks, making ups and downs. This should provide us with plenty of opportunities to short the retracements. I think that SPX will eventually bottom in the 250s. The last week of the month could see a relief (this would also coincide with Christmas); the market could trade higher with the monthly candle closing around the neckline/260 ish.
The red/short zone: Still very early, but I don’t think the right shoulder will go as high as the left one. Anyway, I will update in this chart or a new one later when more information becomes available.
Thank you,
Comment
⋅
After a nice few days rally, i believe a top is in the making; this could mean that a serious selloff is coming as expected. The target should be reached within a few days or over next week.
Comment
⋅
I just posted this chart showing my entry for the next leg down.
Comment
⋅
We are getting close to the target. I think we could have a retracement first, then a final dip. We'll see.
Comment
⋅
Still too early to be long here, but we are getting closer to a reversal. Maybe in a few days.
Trade active
⋅
I think this is it for now, market looks like to reverse. I'm long.
Trade active
⋅
We are in the right shoulder target here; things are about to get interesting. I'm out atm waiting for the market to give me its next direction. There is still a possibility of re-testing 285.