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.
Our preference: position bought above 2415,00 with targets at 2431,00 & 2436,00 in extension.
Alternative scenario: in break of 2415,00, a continuation of the drop will be envisageable with 2410,00 & 2404,00 in line of sight.
Comment: The RSI is mixed with a bullish bias.
