S&P has managed Friday to make a small upward corrective move towards 1650 as expected by our analysis. We were expecting an upward bounce as part of wave C up. We believed that after the downward impulsive wave from 1687 to 1636, an upward three wave correction towards 50%-61.8% Fibonacci retracement was to be expected. That is why our subscribers saw me get long around 1643 spot.
Today, early in the morning due to futures price action opening, we were hit at our first target to sell at 1657 spot (cfds pricing). Currently cfds are showing 1649 and I believe that after the Memorial day holiday, the market is going to open higher towards the two retracement targets to end the upward correction.
The double bottom in the 60 minute chart could be able to push towards 1661 level, but anything above it I expect to be met with heavy selling. I believe at least another leg down towards 1620 at least should be expected during this week. If prices manage to break above 1661 and close firmly above it, then we would have witnessed another shallow 38% retracement correction. However the form and pattern of the rise from 1636 do not support the scenario that we are moving upwards in an impulsive way. The form and pattern of the rise from 1636 looks more like an upward correction. Breaking below 1636 will confirm our bearish view and open the road towards 1620-1600 support level.
Thank you for taking the time to read my new post.