The bears came! But they are still too weak to my taste.

1 May 2020

Today’s movement was exactly what I expected from a bear reaction, as I said in my last analysis, in case you missed it, here’s the link:

Now, although it was expected, I admit that I’m a little disappointed with the bear’s reaction here, I mean, they even couldn’t manage to touch the 21 ema today. SPX lost some immediate support, yes, and that’s an alert for those who are long, but that’s it. I overestimated them, but that's ok. Let’s see the hourly chart:



I think we can consider there’s a H&S here, that was triggered through a gap. Now that’s interesting. In the daily chart, the 21 ema is at 2797 right now, and the target for this H&S in the hourly chart is 2792, the same point that served as support in the past, as I evidenced with a black arrow in the chart.

So, the 2790 – 2800 zone is a good candidate for a support. Although I’m a little skeptical here (I really wish I could buy it near the 2640), we should stick to the technique. The bulls and the bears should watch out, and tomorrow we will see how this will work out.

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Thank you very much.

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