SPX has begun the selloff, or so it seems!
Not to become overly bearish either, there are plenty of ways this could revert next week, but there are a few reasons I see SPX continuing to drop.
On the technical side price broke the 61.8 level, always key when looking at price action. This occurred on multiple timeframes. The next thing to occur will be a retest of that same area, and we will see it's reaction accordingly.
On the fundamental side we have some big news events coming up this week, mainly fed chair jerome powell speaking. I've been aware that the fed has been under pressure to hike interest rates, and while I believe that will be something he addresses, it's impact is a large variable. It's because of that, not having too much certainty, I believe it will create more fear in the market and push SPX down to the next zone.
Given there isn't any major fluctuation in how much price moves and it stays close to the ATR, any entry slightly above the 61.8 area with a 25+ pip stop loss should be adequate to stay away from a stop hunt range.
We will see what happens!
Best of luck to you!
Not to become overly bearish either, there are plenty of ways this could revert next week, but there are a few reasons I see SPX continuing to drop.
On the technical side price broke the 61.8 level, always key when looking at price action. This occurred on multiple timeframes. The next thing to occur will be a retest of that same area, and we will see it's reaction accordingly.
On the fundamental side we have some big news events coming up this week, mainly fed chair jerome powell speaking. I've been aware that the fed has been under pressure to hike interest rates, and while I believe that will be something he addresses, it's impact is a large variable. It's because of that, not having too much certainty, I believe it will create more fear in the market and push SPX down to the next zone.
Given there isn't any major fluctuation in how much price moves and it stays close to the ATR, any entry slightly above the 61.8 area with a 25+ pip stop loss should be adequate to stay away from a stop hunt range.
We will see what happens!
Best of luck to you!