S&P 500 (US500) continues the negative cycle toward 4,391
Although traders bought the index after the US employment data on Friday (non-farm payroll), sellers emerged at 4,542 with follow-through negative momentum resulting in a Bearish Outside Candle being posted on the daily chart. This candle highlights investor enthusiasm to sell rallies and is negative for short-term sentiment.
Our focus this week is the 4,396-4,382 zone. With the 78.6% Fibonacci retracement level of the 4,331-4,610 move located at 4,391, is will be a substantial support area.
Resistance today is located at 4,522.
Conclusion: with the lack of financial data releases this week until Thursday’s US inflation data (Consumer Price Index), we look for the negative trend to continue. It should be noted that the system set up is to buy on dips within the support zone (4,396-4,382).
Our focus this week is the 4,396-4,382 zone. With the 78.6% Fibonacci retracement level of the 4,331-4,610 move located at 4,391, is will be a substantial support area.
Resistance today is located at 4,522.
Conclusion: with the lack of financial data releases this week until Thursday’s US inflation data (Consumer Price Index), we look for the negative trend to continue. It should be noted that the system set up is to buy on dips within the support zone (4,396-4,382).