SP500 Time to Sell?
Looking on different Index ,this scenario can be plausible. For now, I will only use SP500 chart.
SP500 Index Monthly Chart
Right one we are in a Bullish Trend, at the top. Market did not close above bullish trend so far, and it look like we can finish with a nice unsupported price. What can be a very nice signal for a short trade.
If you are looking to take a short one, be careful at my Orange area, we may see buyers come back at this point to try to support SP500 price,to keep SP500 High.
SP500 Index Daily Chart
On daily chart , we can see 3 following thing:
1st: after Buyers breaking the Bullish trend,Sellers came
2nd: 50MA are to far from real price.
3rd: Everytime when we are at the Higher level of Bullish trend, market Correct by only 23-38% in general.And It’s where we are right now also,is why I’m not surprise to see buyers since last 2 days.
What it’s cumming? Sellers definitely show great commitment to go short on last 3 days, But buyers don’t let them go lower.Buyers was able to resist sellers for last 2 days.
For next week, Buyers should go back at 1670.00 and even go for the double top. At this point, we will see if they will be able to support they commitment and go above previews high and bring the SP500 Index to 1700 point. Or they will fail , and if yes…,My 1st Short Target will be 1600 point / 50MA.