S&P500 now facing a wall of resistances. No Short Signal yet !
Updated
We are clearly in an Bullish Blue trend channel with upcoming wall of significant resistances:
1. 4040$ - 200 DMA
2. 4084$
3. 4160$ - 4170$
4. 4230$ - Daily Resistance level
5. Max upside capped at 4330$
Conclusion : Watch for breakdown of upward blue channel in the chart to confirm the start of bearish trend again in SPX.
Key dates to keep in mind are :
- 12 December 2022 for CPI number. Any positive surprise in inflation kills this rally instantly.
- 14 December 2022 for Fed decision on interest rate hikes
- 16 December 2022 - 2022 year end Options Expiry
1. 4040$ - 200 DMA
2. 4084$
- Gap fill with supply level
- 1.414 fib extension
- Weekly downward trend channel upper resistance
3. 4160$ - 4170$
- Weekly resistance level
- 1.618 fib extension
- Daily Supply level
- 50% retracement from recent lows to ATH
4. 4230$ - Daily Resistance level
5. Max upside capped at 4330$
- 2 fib extension
- Major supply level
Conclusion : Watch for breakdown of upward blue channel in the chart to confirm the start of bearish trend again in SPX.
Key dates to keep in mind are :
- 12 December 2022 for CPI number. Any positive surprise in inflation kills this rally instantly.
- 14 December 2022 for Fed decision on interest rate hikes
- 16 December 2022 - 2022 year end Options Expiry
Trade active
Update : SPX got stopped by the first wall of defence around 4100$ with a double top.
We are at lower end of the upward trend channel from Oct lows. My key level to watch is 3859. Any confirmation below this by price action will signal the end of the short melt up from October. Will keep you updated. Keep in mind the options expiry tomorrow. My advice is to wait out the weekly/monthly/yearly expiry tomorrow to avoid being whipsawed:
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.