Bears On S&P500 Can Take Price To 2250
January 30 2016
We are again nominated for 2017 FOREX BEST AWARDS ON FXSTREET. if you like what we do then please vote for us "Best Buy-Side Analysis Contributor" it's Question 3, Answer 4. Thank you very much!
Stocks are moving sharply lower as Trump actions can lead to conflicts between US and some countries. We see market falling back to 2270 very aggressively from 2298 high that was triggered last week, following a completion of a triangle which was a few days earlier. We called that bullish move higher before it happened, but now we should also not be surprised by that turn since we know that trust out of a triangles are final within a higher degree patterns. In other words, we knew that upside is limited as we saw price in wave five, so current reversal lower is start of a deeper corrective set-back. Technically speaking, set-back should be made by minimum three waves lower; an A-B-C structure that can take us back to 2251, then you have 2237 from January 03 gap, and slightly lower is even more important 2228 swing. On the upside keep an eye on wave B which could bounce back to 2288 Sunday, January 29 gap.
S&P500 4h chart
New York time: 00:00:00
Local time: 00:00:00
©2010 - 2018 ew-forecast.comDesign: VOBI