SP500 in sitting on support, breakdown is imminent
In my previous analysis regarding SP500, I said that I expect a drop under the 4k figure and things are getting closer and closer to that moment.
Looking at the price action for the past 4 months, we can see that after a very bad start of the year, stocks have tried to recover, but sellers capped gains in the 4.5-4.6k zone.
A new attempt of recovery started in late March, but again, sellers took control in the same 4.5-4.6k zone.
Going further into last week, we can see that after reaching support again, SP500 rebounded on We and Th, just to sell off hard on Friday.
All this price development, for me at least, is very bearish and I expect a break of support.
In the medium term, my target remains 3.5k, September and October's 2020 highs, and also Fibo 50% for the start of "pandemic" rise, and only SP500 back above 4.6k is bullish in my book.
Of course, also my strategy remains the same: Sell Rallies
Looking at the price action for the past 4 months, we can see that after a very bad start of the year, stocks have tried to recover, but sellers capped gains in the 4.5-4.6k zone.
A new attempt of recovery started in late March, but again, sellers took control in the same 4.5-4.6k zone.
Going further into last week, we can see that after reaching support again, SP500 rebounded on We and Th, just to sell off hard on Friday.
All this price development, for me at least, is very bearish and I expect a break of support.
In the medium term, my target remains 3.5k, September and October's 2020 highs, and also Fibo 50% for the start of "pandemic" rise, and only SP500 back above 4.6k is bullish in my book.
Of course, also my strategy remains the same: Sell Rallies
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