Can s&p break the strong resistance at 1809.9 and its MA50 that coincidently met with the resistance, or can it not?
Should it retrace its drop from that level, the chart will form a head & shoulder pattern and the next support may be tested at 1772.4.
Personally I think there will be certainly some 'hesitation' seen at 1809.9 level and eventually after a rally...
It looks like a good time to short sell if the candle still fails to close above the trend line today and I'm looking at $1577 as the first profit taking point where the support line laid right on the EMA200. Further short positions can be considered if it breaks below EMA200.
Supporting reasons:
1) EMA20 crossing below EMA50 for the first time since Nov 2012
2)...
Supporting reasons:
1) First cross-below between EMA20 & EMA50 since Nov 2012
2) one-year-long uptrend line has just been broken few days ago and fail to recover back to above the trend line after a few tries
3) War with syria is closer (latest news on bloomberg)
4) Economic downturn may be near based on past cycles
