Type:
Bearish Momentum
Key Levels:
Resistance: 3816.00
Pivot: 3744.75
Support: 3643.75
Preferred Case:
On the H4, with price moving below the ichimoku cloud and along the descending trendline, we have a bearish bias that price will drop to the pivot at 3744.75 where the 78.6% fibonacci projection and swing low support are. Once there is downside confirmation of price breaking pivot structure, we would expect bearish momentum to carry price to 1st support at 3643.75 in line with swing low support, 161.8% fibonacci extension and -61.8% fibonacci expansion .
Alternative Scenario:
Alternatively, price may rise to the 1st resistance at 3816.00 where the overlap resistance is.
Fundamentals:
Due to the persistent recession fears, we have a bearish view on the S&P 500 .
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.