Don't buy the news bull trap - ES bear
Saw this on twitter today:
twitter.com/WSJ/stat.../1243267094852055041
Perfect play of news trying to reel in the sheep before unloading on them.
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Fundamentally, US infection rates of Covid-19 have surpassed China's number (albeit, China's figures are definitely questionable), and unemployment figures this week have reached 3.3 million, surpassing the 2.5 estimations.
But for some reason, the markets made 20% jump today....
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This is my view on S&P going into April.
We've got a trend line of the previous peaks during this downtrend. The retracement of the first impulse wave down from Feb was 50%. I drew another fib retracement for the second impulse wave down, and that gave me 2640ish resistance price level. This level shows confluence with the current downtrend, trend line.
2640ish zone is a strong level of interest. If a short squeeze happens to bull trap the hopeful bulls, we may see an extension to 272ish area, but I anticipate a strong downwards movement to 2000 zone in the month of April, possibly into May.
twitter.com/WSJ/stat.../1243267094852055041
Perfect play of news trying to reel in the sheep before unloading on them.
---
Fundamentally, US infection rates of Covid-19 have surpassed China's number (albeit, China's figures are definitely questionable), and unemployment figures this week have reached 3.3 million, surpassing the 2.5 estimations.
But for some reason, the markets made 20% jump today....
---
This is my view on S&P going into April.
We've got a trend line of the previous peaks during this downtrend. The retracement of the first impulse wave down from Feb was 50%. I drew another fib retracement for the second impulse wave down, and that gave me 2640ish resistance price level. This level shows confluence with the current downtrend, trend line.
2640ish zone is a strong level of interest. If a short squeeze happens to bull trap the hopeful bulls, we may see an extension to 272ish area, but I anticipate a strong downwards movement to 2000 zone in the month of April, possibly into May.