A probable scenario for SPX in another few weeks

22 thg 6, 2020

Market looks ripe for another leg down in the near future. We retested that upper trendline on the weekly, and then came that quick selloff two weeks back fueled by FOMC statements. Now slowly grinding our way back to the top trendline resistance again and we probably will get there. However, another rejection at 3235 and I'll be taking an aggressive short position in SPX. Given that there is a relapse of COVID cases and a substantial rise in more LATAM and ASIAN countries, the second wave, and possibly more waves will dampen the euphoria IMO that is currently taking this market higher. Progress is surely made slowly, and all that whipsaws back without strong fundamentals will retest their value areas. And the dismal earnings sure as hell show that current valuations are sky high. Will be trigger ready to take some positions in AAPL, XLK, VIX when that unfolds, while nibbling long positions short term.