$SPX500 | Fibonacci Analysis: Support Found at .382 Retracement

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Trade fechado: objetivo atingido:

Price action played out as forecasted with a nearly +7% day on Monday followed by another green day today.

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Hey traders, I hope you found value in this idea. You can see how price was rejected at the forecasted target area where it printed a "hanging man" candle (indecision) followed by a large bearish rejection candle.

I will be watching the price action around this current area of interest closely in order to find opportunities to enter short (for bearish continuation of the major trend) or to enter long (for bullish continuation of the minor trend).

My initial plan was to short the market immediately at the $2750 to $2800 area in anticipation of a bearish rejection. Instead, I have decided to wait for additional bearish or bullish confirmation before opening a trade for two reasons:

The first being that price still remains in a minor bullish trend at the moment with a fresh break and retest of the $2650 level and as long as the trend remains valid I will avoid fighting against it. Second, I am expecting some sort of short squeeze (which may have already happened during this minor bullish trend), or some other sort of market manipulation to shake out dumb money before we see continuation of the major bearish trend or possibly massive growth to the upside.

It’s gotta go one way or the other. Good luck.

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Quick education session: here I have illustrated a sell model that formed at the recent highs. Unfortunately I wasn’t watching the move happen live and I missed this trade. Nonetheless this chart shows one of the ways that I spot a change in trend

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This was my perspective of the markets throughout the trading session today.

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