Relevant Structures on S&P 500 / The Bullish pressure continues
Today, we will take a look to the most relevant structures we can see on the Daily chart. The consensus right now, is that the Market is in the biggest bullish bubble ever, with sentiment index showing high levels of Extreme greed. However, its not our work to say when the market will reverse. If the market keeps going up, you should be thinking in terms of long opportunities instead of thinking that the market is wrong. Why should you take one side when you can take both...
Lets start:
-The most relevan structure we see right now, are the two yellow trendlines that create an ascending Wedge. The lower one represents a clear dynamic support for the trend, and the higher one can be considered a Dynamic resistance for the price (We will be prepared for a short scenario if the price reaches our Bullish Target at 3850-3900. There we will close all our long positions and we will wait for this two scenarios
a) New consolidation that allow us to take long setups (this can take some days once the price reaches the target)
b) Strong Bearish pressure, with high volume, that give us signs that a correction is not coming but a reversal is on the way.
-An other relevant item of what we are observing right now is the Broken Consolidation. Once a structure of that size is broken either on the Bullish or Bearish direction, you should expect the coming movement to present proportions with the broken structure. in terms of lenght and duration. Thats an other aspect that supports our view towards the 3850 - 3900 Target
Thanks for reading! Trade safe.
Lets start:
-The most relevan structure we see right now, are the two yellow trendlines that create an ascending Wedge. The lower one represents a clear dynamic support for the trend, and the higher one can be considered a Dynamic resistance for the price (We will be prepared for a short scenario if the price reaches our Bullish Target at 3850-3900. There we will close all our long positions and we will wait for this two scenarios
a) New consolidation that allow us to take long setups (this can take some days once the price reaches the target)
b) Strong Bearish pressure, with high volume, that give us signs that a correction is not coming but a reversal is on the way.
-An other relevant item of what we are observing right now is the Broken Consolidation. Once a structure of that size is broken either on the Bullish or Bearish direction, you should expect the coming movement to present proportions with the broken structure. in terms of lenght and duration. Thats an other aspect that supports our view towards the 3850 - 3900 Target
Thanks for reading! Trade safe.
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