Daily Update S&P500 - REBOUND???
If you followed my charts the last week I have been sharing my analysis of the S&P500 and so far I have been spot on. Right now we are looking at a rebound that has yet to break the stop loss I put in and we are looking for a test of the resistance line. In the following post I will go over the S&P 500 showing the big picture and my ongoing analysis of what we can expect tomorrow as well as longterm predictions.
First lets take a look at the big picture for those of you new to my blog.
As you can see from my charting, you can see a lot of drawn in lines. These act as support or resistance and right now we are looking at the S&P trading within an expanding flat pattern. Now if you looked back at my old posts I warned about a drop out of the channel we were trading within which is what we saw. We saw a sharp downward move and followed it up by a pull back to the edge of the channel before another sharp impulse move downward.
I place my stop loss at at the beginning of the channel and after the sharp downward move we have yet to see it break that mark. (It is shown by the blue horizontal line on the chart)
If you take a look at the chart below, you will see a series of blue arrows. This is what I can see the market doing in the next couple days to get us to the point of testing the nearest resistance line. It will be a choppy slow moving pattern that will more than likely test the line and drop before breaking through. Once it does break through watch the price movements carefully as it could break the stop loss and retest the low once more.
Even though I am warning about it breaking the low, I do not think it will occur, this is something you always have to watch out for with the market. Long-term we can expect to see the market climb, break out of the resistance line and head to test the upper limits of the expanding flat pattern. This move might take a month to complete but it is something we need to be very watchful for as this could take a big move in any direction as a news event could cause panic within the markets.
I hope you enjoyed my analysis on the markets and if you liked what you saw check out some of my other posts I will link below. As always have a great day and an even better one trading.
Other posts:
S&P500: https://steemit.com/steem/@ricjames/update-s-and-p500