SPX: Time to be cautious
Güncellendi
Hello Traders,
In my previous analysis, I mentioned good short set up when SPX hit 3500, and as expected we saw significant downside movement today.
Looking at 4 hour chart, SPX could not find physiological $3500 support and that triggered numerous stop losses today. Right now SPX is at $3450 which put it at very awkward spot for both bulls and bears.
For bullish perspective, this could be a 4 hour tightening equilibrium play, which means we may see a pull back to $3500 next few days. Bulls will most likely defend $3400 level as this was the pre-covid all time high and most likely there are clusters of big orders around that zone.
For bearish perspective, this red candles signals overdue weekly consolidation. To completely change the market sentiment, bears need to prove 4 hourly lower low followed by lower high for the confirmation. It is still unclear if $3422 a bottom yet, it is highly possible that bears will attempt to break $3400 to liquidate long orders at $3400. Based on dynamic volume profile, the current support is at $3370 region, which could act as initial low.
In either cases, $3400 will be an important level for trading, and depending on how market react to this level will dictate the market sentiment for next weeks.
Happy trading!!
In my previous analysis, I mentioned good short set up when SPX hit 3500, and as expected we saw significant downside movement today.
Looking at 4 hour chart, SPX could not find physiological $3500 support and that triggered numerous stop losses today. Right now SPX is at $3450 which put it at very awkward spot for both bulls and bears.
For bullish perspective, this could be a 4 hour tightening equilibrium play, which means we may see a pull back to $3500 next few days. Bulls will most likely defend $3400 level as this was the pre-covid all time high and most likely there are clusters of big orders around that zone.
For bearish perspective, this red candles signals overdue weekly consolidation. To completely change the market sentiment, bears need to prove 4 hourly lower low followed by lower high for the confirmation. It is still unclear if $3422 a bottom yet, it is highly possible that bears will attempt to break $3400 to liquidate long orders at $3400. Based on dynamic volume profile, the current support is at $3370 region, which could act as initial low.
In either cases, $3400 will be an important level for trading, and depending on how market react to this level will dictate the market sentiment for next weeks.
Happy trading!!
Not
The bearish scenario is taking a place. $3370 is acting as a good support for now with decent dip buying, however, the market still seems to be weak at the moment. With this high bearish sentiment, it is highly likely we see oversold 4 hourly RSI next week.
Not
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