US30a closer look at what I'm waiting for. Enter only with confirmation. We still hadn't hit the higher time frame's resistance or supply.
Closerlook
Closer look at the current S&P500 situationThis analysis shows what I am currently looking for in the market, regarding the S&P500 possible outcomes.
Since my last post the bulls made a good job and prices reached the previous tops level, at a very strong resistance near 4200.
But at such levels a small range is common and expected. I highlighted the zone between the orange lines, that was defined by the last top and the last bottom. I am carefully observing the movements around this small area, and I consider that the outcomes from it may lead to decisive movements. I am considering the breakout of the 4200 to be a long trade trigger, whilst the breakdown would be a short trade trigger. But while none of these cases happen I remain neutral until I can see some outcome out of this relevant resistance level.
The overcoming of the 4200 zone would be the final missing confirmation of a trend reversal (from bear to bull).
On the other hand, this resistance can do its job once again and hold the prices below it, keeping us in the congestion or in the bearish scenario for the next few months.
It is good to note that we're close to the "sell in May" seasonality.
