SP500 (Y20.P3.E2).Still bullish but a correction soon
Hi All,
Looking at the chart from a channel perspective, one can see that the price action is over extended with a daily and what looks like the weekly, both with bearish divergences.
One will then expect sooner or later for it to return to the average, in this case, towards the mean of the channel.
I believe a double top is taking place and if we see the indicators cross over, then that is the signal for a down ward correction.
Just like Gold or BTC , I don't see a big correction. I believe we will still have upward pressure based on the indicators.
OBSERVATION:
=================================================
> The price is completing a double top with a bearish divergence on the daily
> The price is over extended to the 3rd deviation of the channel
> Looking at the weekly indicators, we can see the orange energy below 60%, showing downward pressure is close near by
> We have the green rsi almost touching the red, another downward pressure indicator near in the making
> Since both RSI's are above 50 or 60%, we know at this time, that the pullback will not so deep, at this point
> The Stoch . is close to crossing over, the signals for a downward motion.
THOUGHTS:
=================================================
> Price will likely move towards the 21, 34, (black ribbon) or the 50 EMA , which are all within the channel, 1st deviation.
> Along with the fib. retracement, its my opinion we will make a small dip below the support line touching one of the moving averages.
Please give me a like or tick for this post.
Regards,
S.Sari
8 HRLY chart
Close up view on the weekly
Looking at the chart from a channel perspective, one can see that the price action is over extended with a daily and what looks like the weekly, both with bearish divergences.
One will then expect sooner or later for it to return to the average, in this case, towards the mean of the channel.
I believe a double top is taking place and if we see the indicators cross over, then that is the signal for a down ward correction.
Just like Gold or BTC , I don't see a big correction. I believe we will still have upward pressure based on the indicators.
OBSERVATION:
=================================================
> The price is completing a double top with a bearish divergence on the daily
> The price is over extended to the 3rd deviation of the channel
> Looking at the weekly indicators, we can see the orange energy below 60%, showing downward pressure is close near by
> We have the green rsi almost touching the red, another downward pressure indicator near in the making
> Since both RSI's are above 50 or 60%, we know at this time, that the pullback will not so deep, at this point
> The Stoch . is close to crossing over, the signals for a downward motion.
THOUGHTS:
=================================================
> Price will likely move towards the 21, 34, (black ribbon) or the 50 EMA , which are all within the channel, 1st deviation.
> Along with the fib. retracement, its my opinion we will make a small dip below the support line touching one of the moving averages.
Please give me a like or tick for this post.
Regards,
S.Sari
8 HRLY chart
Close up view on the weekly
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