SPX Bearish Scenario (Daily chart)
Price closing below the support zone (yellow rectangle) is already a fairly bearish sign. That said, it's a very bearish (short-term) sign if price re-tests the median line (red downward slopped line) of the smaller, down-trend, pitchfork that I drew on the chart.
If that were to happen, a trade could be planned off of the correction to that median line test. Ideal entry would be a re-test of support (turned resistance) zone, especially if it happens in confluence with a test of the 1.0 pitchfork level (first solid black line above the red median line).
If you zoom out, you can take a look at the long time-frame up-trend pitchfork. You can see that it was strong trend by all the median line tests. If the -0.5 level (first dotted line below the up-slopped red line) is breached, this is bearish behavior, considering that this level has held through so many tests.
I drew out what I consider to be a fairly high probability price path, IF the median line test happens.
If that were to happen, a trade could be planned off of the correction to that median line test. Ideal entry would be a re-test of support (turned resistance) zone, especially if it happens in confluence with a test of the 1.0 pitchfork level (first solid black line above the red median line).
If you zoom out, you can take a look at the long time-frame up-trend pitchfork. You can see that it was strong trend by all the median line tests. If the -0.5 level (first dotted line below the up-slopped red line) is breached, this is bearish behavior, considering that this level has held through so many tests.
I drew out what I consider to be a fairly high probability price path, IF the median line test happens.
Feragatname
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