Amid the recent volatility across equity markets, I had thought I’ll share my views on the S and P 500.
I can’t predict where the markets will go, but I can control my actions according to the different market scenarios.
4 Reasons Why I’m Bearish on The S and P 500
1. The 200-day moving average is pointing lower. This signals a shift in the longer-term trend.
2. Price is below the 20, 50, 100, and 200-day moving average. This is bearish across short, intermediate, and longer-term time frames.
3. Over the last 9 days, selling occurs on higher volume and buying occurs on lighter volume.
4. Price re-tested the previous support turned resistance. This could be a turning point where the bears regain control.
When will my bias change?
1. 1800 is significant support where the bulls will attempt to regain control. If it holds up, you can expect the price to re-test the 1980 – 2000 resistance area.
2. If the price breaks above the 1980 – 2000 area, I’ll change my bias from bearish to neutral.
1. If you’re a position trader, you can look to short with stops above the resistance area in S and P.
2. If you’re a day trader, you can zoom into the 15 mins chart and look for trading opportunities in s and p.
Rejection of higher prices at resistance areas are shorting opportunities.
I hope you found this post about s and p helpful. This is not trading advice. Kindly do your due diligence before risking your hard-earned money.
As always, comments are welcomed and encouraged. Cheers!
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