SPX target buy zone at 3,380 to 3,240

13 oct. 2022

Technical trading is about confluence of indicators to increase probability of trade success. In this case, there are several indicators pointing towards a reversal in the SPX; An oversold daily RSI, a weekly RSI approaching oversold territory, Bullish divergence forming on the daily RSI, a descending Megaphone Pattern (79% probability), and the strong support of pre-covid highs. In my opinion, we are due for a significant bounce on the S&P 500. If the descending megaphone structure plays out, this would correspond to a price target of around $5,000 for the S&P. NFA.