If we join the highs of 14th Oct and 5th Nov and extend it, there is a clear down trend line. Yesterday and the Day before yesterday, S&P 500 Future clearly got good resistance there and even today (at the time of writing this post, US Markets are open), also it looks like acting as resistance.
The support line that is being shown on the chart meets the above mentioned down trend line at about 893 and it is going to be interesting going forward. Such situations are always exciting.
To add to this excitement is Fibonacci 61.8% retracement of the down move from 5th Nov high to 21st Nov low is also near, not taken out on a closing basis so far.
Given the volatility, I would refrain from entering S&P 500 at this time, but if I need to make a choice, I would go for a short here as trend line resistance is acting big and risk - reward ratio is in favour of short.
Happy Trading
Spot on! The market has actually tested this level 3 times already. If the week closes above 900, it is very likely that we will see a continuation of the uptrend, but the wise thing to do is to allow the market take that decision...
ReplyDeleteYes my friend, very rightly said - we should better wait for the market to take decisive action (and at this time just a couple hours before today's close), it still is doji on daily...
ReplyDeleteMay be we need to wait some more...