SP500 : ROAD TO BEARISH CORRECTION
- The market is trading inside a bearish Broadening Formation following a bull run started at the beginning of the year.
- Prices have recently broken-out their short-term bullish trendline (dotted) following a reject from the 4,215.0pts level, the upper bound of the broadening formation.
- Both EMA have crossed and reversed, now acting as dynamic resistances to the market ; while the DMI indicator also showed a rising bearish pressure, inside a more and more directional price action.
- This is seen as a bearish situation. Even if a very short-term rebound to 4,150.0pts can still happen, the next targets can be found over 4130.0pts; 4,110.0pts, 4,080.0pts and even the 4,000.0pts/4,010.0pts zone by extension.
- Prices have recently broken-out their short-term bullish trendline (dotted) following a reject from the 4,215.0pts level, the upper bound of the broadening formation.
- Both EMA have crossed and reversed, now acting as dynamic resistances to the market ; while the DMI indicator also showed a rising bearish pressure, inside a more and more directional price action.
- This is seen as a bearish situation. Even if a very short-term rebound to 4,150.0pts can still happen, the next targets can be found over 4130.0pts; 4,110.0pts, 4,080.0pts and even the 4,000.0pts/4,010.0pts zone by extension.
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