SPX needs a Gap Down below 4255-57 tomorrow...

18 авг. 2022 г.

Quick update.

The price needs to gap down tomorrow below 4255-57 to confirm the top being in place.
Usually this type of the move trap bulls for long, so as long as we gap down hard tomorrow, I can mark the top being in.
There is still a room to squeeze to 4330-34, but Im not really playing it unless I see a good setup.

If we gap up tomorrow, will have to revisit my charts.

Tomorrow should continue today's day, we had a reversal to downside and if this is real we should see a low on the 22nd-23rd, small bounce 23-24th and last low or higher low on the 25-26th
24th is a panic cycle day! Mark it on your calendar

Numbers to watch tomorrow:

- Maj resistance is the same - 4308.50 (on closing level)
- First main support is at 4255-57
- 4220 and next is at 4175
- Ideal target of this move is at 4125-46

Ideally we should see something similar of a move from EOM Mar high. You can revisit a gap down below 4520, which was retested and never seen since after.
Tomorrow's move should be a start of the first move down, fits with cycle lows into 22-23rd or 25-26th, then a rally into Labour Day high/lower high.
The week of Sep 5th is a panic cycle week, so a gap down from there is expected to trap all the bulls, especially after staying long over the long weekend.


Have a good night