S&P500 Thought Process
Hi Folks,
The S&P500 chart was looking pretty interesting so I just thought I'd throw my 2 cents into the fray. My thought process is as follows:
We have been stuck in the range of 3200-3400 for the past few days. As such there are Stop Losses accumulating outside the range as indicated by the yellow regions of Stop Loss Area 1 and Stop Loss Area 2.
1. Since the SPX was unable to break the recent high on Friday, a little double top has been formed and as such I believe that SL Area 2 will be taken out first. Once this happens, bears will get more confident and throw in more Stop Losses into Area 1 (causing it to become pretty big). The price will then look for support around the 50% retracement or 61.8% retracement (more likely) and reject strongly to the upside.
2. The momentum will carry it to the recent top around 3240 (which can be taken as TP1 if you like), break it and pick up the massive Stop Losses that accumulated around Area 1 and pump strongly to the upside.
TLDR: The white squiggly line is basically how I think it will play out lol
Cheers!
The S&P500 chart was looking pretty interesting so I just thought I'd throw my 2 cents into the fray. My thought process is as follows:
We have been stuck in the range of 3200-3400 for the past few days. As such there are Stop Losses accumulating outside the range as indicated by the yellow regions of Stop Loss Area 1 and Stop Loss Area 2.
1. Since the SPX was unable to break the recent high on Friday, a little double top has been formed and as such I believe that SL Area 2 will be taken out first. Once this happens, bears will get more confident and throw in more Stop Losses into Area 1 (causing it to become pretty big). The price will then look for support around the 50% retracement or 61.8% retracement (more likely) and reject strongly to the upside.
2. The momentum will carry it to the recent top around 3240 (which can be taken as TP1 if you like), break it and pick up the massive Stop Losses that accumulated around Area 1 and pump strongly to the upside.
TLDR: The white squiggly line is basically how I think it will play out lol
Cheers!
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