Now
The S&P500 formed a double top (the first peak was formed on April 29). The middle level of the range (2879) was passed without a rebound and the price went down to 2818 as I expected. Buy when the resistance zone of 2947-2972 is destroyed. Relationship between the USA and China became worse, the economic situation is a kind of disaster and the consequences of the quarantine has a strong impact and so I expect continuation of moving S&P500 to the South.
Daily chart
Daily candle closes below 2856 = a signal for the next stops at 2730 and 2630. The price can quickly return to 2280 with a negative background, so this is a magnet, upon reaching which the market could try to rebound on the expectations of a double bottom and a W-shaped recovery.
Monthly chart
S&P500 dropped to the level of the 30-year moving average sma-360 (the lowest point was 667) in the crisis years of 2007-2009. Now we've got perfect conditions to repeat that touchdown. For the current month, the value of sma-300 (25-year-old moving) confluent with the key support of 1500, and sma-360 (30-year-old moving) is at 1300. Thus, magnet = zone 1500. Nearest supports = 2507 and 2120. The nearest resistance which hasn't been broken recently = 2873 and this is the level of the fast moving average sma-25, which confluent with the extremum of January 2018.
Summary
The downtrend is on its way. Shorts are in priority. Keep cash in your pocket (more than 60% of the portfolio). Positive recovery is possible after the price breaks through the resistance zone of 2972 and closes the day above it at least.
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Stay safe.
The S&P500 formed a double top (the first peak was formed on April 29). The middle level of the range (2879) was passed without a rebound and the price went down to 2818 as I expected. Buy when the resistance zone of 2947-2972 is destroyed. Relationship between the USA and China became worse, the economic situation is a kind of disaster and the consequences of the quarantine has a strong impact and so I expect continuation of moving S&P500 to the South.
Daily chart
Daily candle closes below 2856 = a signal for the next stops at 2730 and 2630. The price can quickly return to 2280 with a negative background, so this is a magnet, upon reaching which the market could try to rebound on the expectations of a double bottom and a W-shaped recovery.
Monthly chart
S&P500 dropped to the level of the 30-year moving average sma-360 (the lowest point was 667) in the crisis years of 2007-2009. Now we've got perfect conditions to repeat that touchdown. For the current month, the value of sma-300 (25-year-old moving) confluent with the key support of 1500, and sma-360 (30-year-old moving) is at 1300. Thus, magnet = zone 1500. Nearest supports = 2507 and 2120. The nearest resistance which hasn't been broken recently = 2873 and this is the level of the fast moving average sma-25, which confluent with the extremum of January 2018.
Summary
The downtrend is on its way. Shorts are in priority. Keep cash in your pocket (more than 60% of the portfolio). Positive recovery is possible after the price breaks through the resistance zone of 2972 and closes the day above it at least.
PM me for requests of TA (free).
Like if useful.
Subscribe.
Be healthy.
Stay safe.
