S&P is undergoing a pullback from the downward impulse from March to complete the ABC corrective wave.
Time will tell if this correction will be simple or complex.
I'm leaning towards a complex correction as the affects of the corona virus will take time to show up in the economy.
Q1 earnings is not indicative of what this virus is doing to the economy and there are no signs of a viable exit strategy from the virus other than a vaccine.
The chances of a vaccine being discovered, tested, mass produced and distributed without economic pain is unlikely.
These are unprecedented times indeed.
Time will tell if this correction will be simple or complex.
I'm leaning towards a complex correction as the affects of the corona virus will take time to show up in the economy.
Q1 earnings is not indicative of what this virus is doing to the economy and there are no signs of a viable exit strategy from the virus other than a vaccine.
The chances of a vaccine being discovered, tested, mass produced and distributed without economic pain is unlikely.
These are unprecedented times indeed.
Note
smaller time frame look at the wedge - the price is testing the structure.Note
It's testing the same wedge structure, but there are a lot of sellers in this zone.Note
The Bulls were able to break back inside the wedge and test the upper bound.they were rejected and are outside the wedge again.
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Today there was a war between the bulls and the bears on the edge of wedge. you can see the volume spikes when they try to break down and break back in the wedge.what does all this mean? breaking into the lower bound of the wedge is bad for the bears of course, but if they break above the top of the wedge, then it's time to close shorts because you never know if it can go sharply upwards.
Note
Bulls tried to get back in the but was rejected.Let's see if we see a test on the lower bound of the wedge tomorrow....
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The wedge structure has now been broken which is what we have been waiting for.Look to see 2400s again as the first target.
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Price has tested the structure but rejected. Bears are still looking goodNote
Bulls are still trying to rally but unable to break up. Stay strong bearsNote
Bulls are exhausted, we are going to 2600
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.