Hello everyone. S&P tumbled with other indices last Friday. Frankly speaking, it was really ugly on the daily chart as it closed below the long-term MA for the first time since late Feb of last year.
How further down it might go?
On the monthly chart, it's still in the bullish uptrend. The firm demand zone from my view is around 4050-4200. That's another 8-9% drop from the current level.
On the day chart, the six consecutive bearish candles may scare a lot of investors. From the recent high created on Jan. 4th, S&P fell by almost 9%. However, I'm a bit optimistic on the recovery in the next few days. Look at the angle it fell, it's free fall. The rising US 10y yield and possible 3-4 times of rate hike in 2022 is gradually pricing in.
The free fall is breakout, which is likely to be followed by downtrend channel or sideways range. I will pay attention to the demand zone on the monthly. I'm expecting price will react to the zone and bounce back. if not, price is likely to drop by another 20%, probably seeking support around 3300
What do you think? Give me a like if you're with me.
How further down it might go?
On the monthly chart, it's still in the bullish uptrend. The firm demand zone from my view is around 4050-4200. That's another 8-9% drop from the current level.
On the day chart, the six consecutive bearish candles may scare a lot of investors. From the recent high created on Jan. 4th, S&P fell by almost 9%. However, I'm a bit optimistic on the recovery in the next few days. Look at the angle it fell, it's free fall. The rising US 10y yield and possible 3-4 times of rate hike in 2022 is gradually pricing in.
The free fall is breakout, which is likely to be followed by downtrend channel or sideways range. I will pay attention to the demand zone on the monthly. I'm expecting price will react to the zone and bounce back. if not, price is likely to drop by another 20%, probably seeking support around 3300
What do you think? Give me a like if you're with me.
plan your trade and trade your plan