S&P500: Bearish month of June incoming?
Quick update for the S&P500 and the outlook for June and how it will affect the crypto market. Right now the S&P500 is fighting crucial resistance for a bullish follow through, failing to break it will lead to a bearish month of June.
If we do not manage to break resistance at 4220; we are effectively forming a new and bigger head and shoulders pattern with a breakdown target of around 4096 to 4063. Dropping to these levels and finding support there is a nice trade but not such a big deal for the market as a whole. However if we break below 4063 and specifically below the second leg of the W at 4041; we are in for a bearish month of June. In this case we will drop to at least 3966 and breaking that will lead to to around the 3800 mark. Confirmations for a downtrend are found at breaking the channel / wedge at around 4200 and dropping decisively below the support zone at around 4160. Breaking the resistance at 4220 however will open the doorway for a new ATH, so first we need confirmations to the downside and we already have multiple indications with bearish divergences across the MACD, RSI and MFI.
Thus, my conclusion is that a consolidation or correction is likely, however it is to be seen if we would see severe bear action or just a small retracement. In case of a bigger correction, the crypto markets would be in for more severe corrections and alts would be dropping to their lowest price levels seen in 2021. Confirmations first, the chart will tell...
IMPORTANT: this is not financial advice, trade or invest based on your own risk and research.
If we do not manage to break resistance at 4220; we are effectively forming a new and bigger head and shoulders pattern with a breakdown target of around 4096 to 4063. Dropping to these levels and finding support there is a nice trade but not such a big deal for the market as a whole. However if we break below 4063 and specifically below the second leg of the W at 4041; we are in for a bearish month of June. In this case we will drop to at least 3966 and breaking that will lead to to around the 3800 mark. Confirmations for a downtrend are found at breaking the channel / wedge at around 4200 and dropping decisively below the support zone at around 4160. Breaking the resistance at 4220 however will open the doorway for a new ATH, so first we need confirmations to the downside and we already have multiple indications with bearish divergences across the MACD, RSI and MFI.
Thus, my conclusion is that a consolidation or correction is likely, however it is to be seen if we would see severe bear action or just a small retracement. In case of a bigger correction, the crypto markets would be in for more severe corrections and alts would be dropping to their lowest price levels seen in 2021. Confirmations first, the chart will tell...
IMPORTANT: this is not financial advice, trade or invest based on your own risk and research.
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UPDATE: Looks who is wicking below the channel!
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