S&P 500 - Medium term upside or lower lows?
Updated
In our previous post we outlined how we distinguish tow different scenarios.
Either we are in a ABC to the upside targeting 4300 and possibly beyond (as labeled in the main chart, green arrow) or we are in wave 3 of C targeting lower lows and the completion of the bearish wolfe wave pattern.
We stated how we believe the first scenario to be more likely, but the broadening patterns, the fact that priced failed to take out 4136, bearish divergence on rsi and the wolfe wave that still has a lower target suggests that the bearish scenario is still a possibility.
This may unfold as below:
In each case, a movement to the downside is now expected. We evaluate the probability of the two scenarios once more price action unfolds.
Breaking the major trendline and retesting or fake out? Stay tuned.
We are short from @4050 stop loss 4065.5 risk 0.6% of equity
Either we are in a ABC to the upside targeting 4300 and possibly beyond (as labeled in the main chart, green arrow) or we are in wave 3 of C targeting lower lows and the completion of the bearish wolfe wave pattern.
We stated how we believe the first scenario to be more likely, but the broadening patterns, the fact that priced failed to take out 4136, bearish divergence on rsi and the wolfe wave that still has a lower target suggests that the bearish scenario is still a possibility.
This may unfold as below:
In each case, a movement to the downside is now expected. We evaluate the probability of the two scenarios once more price action unfolds.
Breaking the major trendline and retesting or fake out? Stay tuned.
We are short from @4050 stop loss 4065.5 risk 0.6% of equity
Comment
corresponding situation on nasdaq100, labeled according to the medium term bullish scenario
Trade active
stop extended 4080 risk 1.2%Comment
added avg entry 4056 stop loss 4084.5 risk 1.5%Comment
iperextended.. giving some breath upon the closeTrade active
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