SPX - Near-term Bounce Opportunity
The SPX has fallen quite substantially, down approximately 8% over the last few trading days, but a relief rally may be just around the corner.
I would expect at best, a 50% retracement ($325) of the total fall, but being more conservative never hurt anyone, so a target of around the 38.2% ($322) fib level would be quite a feasible target in my opinion.
Whilst it is impossible to determine whether this is or is not the bottom, there are some signs that at least a relief rally may be staged from here.
- Bullish RSI divergence
- Well beyond 3 ATR on the daily (this is a less reliable metric)
- The significant gap between current price action and the key moving averages, particularly between the shorter-term trading moving averages and longer-term averages
Any near-term bounce trade after such a significant drop carries inherent risks, however nothing ever goes straight up or straight down indefinitely, nevertheless, position accordingly.
-TradingEdge
I would expect at best, a 50% retracement ($325) of the total fall, but being more conservative never hurt anyone, so a target of around the 38.2% ($322) fib level would be quite a feasible target in my opinion.
Whilst it is impossible to determine whether this is or is not the bottom, there are some signs that at least a relief rally may be staged from here.
- Bullish RSI divergence
- Well beyond 3 ATR on the daily (this is a less reliable metric)
- The significant gap between current price action and the key moving averages, particularly between the shorter-term trading moving averages and longer-term averages
Any near-term bounce trade after such a significant drop carries inherent risks, however nothing ever goes straight up or straight down indefinitely, nevertheless, position accordingly.
-TradingEdge
Publikasi terkait
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.