SPX500 - Ending wedge, selling into rallies

11 de jul. de 2019

SPX500USD

US500 - Intraday - We look to Sell at 3020 (stop at 3030)

Our profit targets will be 2910 and 2900

Resistance: 3022 / 3040 / 3050
Support: 2970 / 2910 / 2900


Weekly – Close to an exhaustion count (trend line resistance at 3032)

Daily chart – Overbought

Intraday chart – Ending wedge. 261.8% lines up with the trend of
higher highs. A break of 2970 and the measured move target is 2910


Dips continue to attract buyers. Price action continues to trade around the all-time highs. Price action has formed a bearish ending wedge formation. The trend of higher highs is located at 3022. The 261.8% Fibonacci extension is located at 3021 from 2958 to 2982. The rally is close to an exhaustion count on the weekly chart. Bullish divergence can be seen on the 4-hour chart (the chart makes a lower low while the oscillator makes a higher low), often a signal of exhausted bearish momentum, or at least a correction higher. Preferred trade is to sell into rallies. Trend line support is located at 2970. The formation has a measured move target of 2910.