The S&P 500 index may be in the process of retesting the 2100 area, which corresponds to the 50% Fib retracement of the low of the end of June to the high of mid August, coinciding also with an uptrend line in place since the beginning of the year. The weekly long-term GMMA (blue group of EMAs) is pointing upwards and expanding, indicating a high probability that more up moves are likely to occur, possibly to the 2300-2350 area coinciding with the 100-127% extension of the corrective move.
Taking in to account the previous analysis, one may play the corrective move by shorting the index towards the round 2100 area, with subsequent long position to the 2300-2350 area. On the other hand, one may take a more conservative approach, wait for the index to reach the 2100 and take then take a long position to 2300-2350.
Lets see what happens!
Happy trading all!
Taking in to account the previous analysis, one may play the corrective move by shorting the index towards the round 2100 area, with subsequent long position to the 2300-2350 area. On the other hand, one may take a more conservative approach, wait for the index to reach the 2100 and take then take a long position to 2300-2350.
Lets see what happens!
Happy trading all!