Short

S&P500 - Correct To 100Dma

Updated

Good chance ES will correct to at least the 100Dma here.

Significant 2.618 fib has been hit taken from first significant pivots in Nov '20 after previous correction where price tagged the 100Dma.

Todays bearish engulfing candle takes price passed local low which will likely conclude in an ABC zig zag correction back to $4350 area.

Not advice.

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D RSI rejected from centre could see 30 - 40 if similar correction to last.

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1:1 C wave hit. I'll be looking for a 4hr close above "1" to make an entry. If price rejects from 1 then could be much lower lows coming - potentially a real crash, but here it currently looks like it will recover.

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The longer price remains below "1" the more chance this move will at the very least become a C wave extenion to 1.618, or it is the start of a new trend to the downside = a big crash.

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D RSI is now at its lowest since March '20 indicates it will probably move on from here.

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But for the big crash W RSI will need to consolidate in the lower quadrant and there is still a way to go yet. A small probe into the lower quadrant followed by a swift recovery could provide a good entry.

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100Dma hit.

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Very significant looking hammer on SPXUSD bouncing back to the 1:1. I think it highly likely the bottom is in here. I have entered a long position here SL below the low.

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Also note gravestone doji on DXY hinting at a recovery.

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The bearishness of the C wave and also since this bounce all point towards further downside and probable crash. More content in thread below. I am now short.

dRends35

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