S&P500 fell sharply earlier this year, still this market is under correction until it breaks the top. But for now price action is stalling around the top of the multi-days channel, i am expecting a drop to at least test the $2,674 area. Look for sell setups if you have your trading strategy.
Happy Trading.
The SP:SPX / FOREXCOM:SPXUSD futures seem to make a rising wedge pattern. After this, it may make a C&H pattern to complete a bottoming pattern for the coming days.
SP:SPX , OANDA:SPX500USD futures are looking to go lower. Trump moved the markets yesterday with a small "relieve" rally. However, the markets couldn't hold on the gains and it became a loss. This is signaling weakness in the market. The SPX futures are now making a bear flag and will probably breakout soon to go lower. Remeber, trade after confirmation (breakout).
2 reasons on 2 timeframes.
The 2 drops could have been a warning for a bigger down move to come.
Happy to be proven wrong but I can't find any reason to be bullish at this stage.
SPX500 is testing its resistance at 2739 (76.4% Fibonacci retracement, horizontal overlap resistance) where it could potentially reverse, causing price to fall to its major support at 2679 (38.2% Fibonacci retracement, horizontal overlap support).
Stochastic (55, 5, 3) is testing its resistance at 97% where a corresponding reaction could occur.
Trading CFDs on...
SPX500USD is approaching resistance at 2684 (76.4% Fibonacci, 61.8% Fibonacci extension, 61.8% Fibonacci extension, horizontal overlap resistance) where price could potentially react off, causing it to fall to its support at 2622 (61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal swing low support). We do have to be cautious of the intermediate...
Current consolidation in S&P 500 could shape a triangular pattern ABCDE.
The drop started on 18th of April shouldn't exceed the low of the wave C at the 2553.
The breakout of triangle could be a trigger to enter long.
Some riskier people could buy on the dip to the downside of Triangle but it would be a mere guessing
as the WXY main count could still unfold...
Price action for the S&P 500 from January 29, 2018 till present date has been captured in this analysis using a contracting triangle Elliott wave structure. The implication of this structure for the S&P 500 is that price should resume its bullish trend once a breakout occurs out of the triangle. Breakout point as used in this analysis is ~ $2718.51
The post...
Descending channel plus lower low to lower high are being made so this indicates bearish move and also bearish triangle pattern is also formed as well.
That is 3 indications that this CFD will go bearish.
It looks like first 5 waves down of wave A are over in the upcoming zigzag structure.
Next we could see 3 waves up in the countertrend correction, wave B.
It could reach between 50% and 78.6% of wave A.
Then there is a second leg of 5 waves down of wave C.
Let us see how it goes.
I called for the temporary strength in wave (B) in my earlier post (see related idea).
It looks like we are completing it and another drop down is just ahead.
Signs of wave B soonest finish are: wave C in wave (B) already reached the 1.618 of wave A.
Wave (B) has almost reached the 61.8% of wave (A).
The second drop could be even faster as it will be wave (C)....
Earlier I posted a map with hourly chart with microview.
This is to give a bird's eye view.
Wave A of 4 could have been finished already.
Now wave B to the upside before another drop down, which should break below the trendline support.
50-61.8% retracement area is the final target for this correction I guess.
More of a forex and crypto guy but today the SP:SPX caught me eye for nice 2 month short to 2200. Ill update you guys as we go. If you would like a more in depth reasoning please feel free to leave a comment below.
