Daily chart with head and shoulders pattern for S&P
Daily chart with head and shoulders pattern for NASDAQ
The market made a brave attempt to bounce above my first resistance which is the lower MOBO bands in pre-market hours (it feels like the Plunge Protection Team) but failed miserably soon after the market opened. All 3 indexes closed right below the MOBO bands. This indicates bearish momentum.
All 3 indexes are also showing a head and shoulders pattern on daily with a downside target of around 900 for the S&P. Currently my downside target is only until 950 as indicated by Fibonacci retracement.
I believe we are not ready to bounce yet and that there should be a few more days of downside. However I’m seeing a bullish setup being formed that would have to be confirmed by a bullish candle for today and maybe tomorrow. We shall see how this turns out.
No comments:
Post a Comment