The last time I shared my view on the S&P500, “S&P500 Time to Sell“, I mentioned it could be a good time to take some money off the table and even start overweighting short positions.
In this update I would like to share my weekly chart of the S&P500.
My view is the following:
The S&P500 will likely face (at least) 7 more weeks of bearish price action, towards the 2100-2200 area, into October.
It could be possible to see a minor Higher High (2510-2570 area, orange scenario) but even that would not change the story much…the S&P500 is ready for a pullback of 10%-20%. Even in case a Higher High will be formed in the 2510-70 area, the Risk:Reward ratio still favors bearish positions in my view (and according to math) and we should sell on strength and take profit on weakness. Sell the rip and close on the dip. October seems suited for a buy the dip and close on the rip.
S&P500 Weekly Chart – Two Scenarios: Black and Orange – a High is near
Want more analysis?
For the full analysis, please login to your eToro account and check my feed “EdwinVandenBerg“. On my feed I will discuss the Daily and 4h charts (Patterns of Price, Next Cycle Time Windows, Elliott Wave scenarios, Fibonacci Key Levels, Market Seasonalities, Market Breadth, RSI divergences and reversals, VIX, DAX Daily and 4h charts and the Squeeze Indicator). I use the daily and 4h time frames to trade the US markets for the bounces up and down. The Weekly Chart is for the bigger picture.
So if you want to know when the next short term low is likely to be formed, then join me at eToro guys. I really like the platform, to discuss trading ideas and help each other. Hope to see you soon!
Enjoy your weekend!
SIGN UP AND STAY INFORMED