Did the SP500 reach its highest for a while ?
This is the question that many financial analysts are trying to answer in order to forecast the beginning of a potential downward correction phase.
On the graphic, you will find all the important Fibonacci and structure levels essential to understand my point of view. The S&P 500 index has been building a sub-wave 3 for the past 8 months.
This bullish impulse was initiated after a bullish engulfing pattern breaks above the resistance level at 2,130. Prices have now reached the 1.616 Fibonacci extension level, where buyers might take their benefits.
If you also have long positions running on the S&P 500, it makes the most sense to partially close them, and make sure your stop loss is break even.
No reversal signal has been initiated yet on the daily time-frame, so it is advisable to wait a concrete bearish price action before to short the S&P 500 index.
This is the question that many financial analysts are trying to answer in order to forecast the beginning of a potential downward correction phase.
On the graphic, you will find all the important Fibonacci and structure levels essential to understand my point of view. The S&P 500 index has been building a sub-wave 3 for the past 8 months.
This bullish impulse was initiated after a bullish engulfing pattern breaks above the resistance level at 2,130. Prices have now reached the 1.616 Fibonacci extension level, where buyers might take their benefits.
If you also have long positions running on the S&P 500, it makes the most sense to partially close them, and make sure your stop loss is break even.
No reversal signal has been initiated yet on the daily time-frame, so it is advisable to wait a concrete bearish price action before to short the S&P 500 index.