S&P has completed or is about to complete its upward move from 1646. The rise according to our Elliott wave analysis seems complete and we think a decent normal pull back towards the 38% Fibonacci retracement should be anticipated over the coming sessions. Prices have unfolded upwards in an impulsive pattern and we believe there is very little upward potential left for the index.
S&P is near very important resistance levels on a weekly basis as shown in the chart below. We expect prices to reverse downwards soon as we think there is no much more fuel left to sustain this rally.
Although currently trend remains up, we will wait for sell signals to initiate short positions on the index. The first sign will be an hourly close below 1756. A break below 1740 will confirm that the entire upward move is over. Our first target after the confirmation will be the 38% Fibonacci retracement between 1718-1720.
Our second target is the 1705-1690 area if prices break below the 38% retracement. The longer term trend remains bullish and subscribers will be notified in detail for the important longer term support and resistance levels and the price levels that will determine trend on a bigger time frame. Additionaly members will receive our strategy on how we treat this index at 1765 and what trades we plan on making.
As always, thank you for taking the time to read my new post.