Dow has moved in line with our yesterday’s bearish scenario, reaching the suggested technical target we recommended our client with at 15575.00 easily and extended the bearishness below this level.
Currently, trading below this resistance is a negative catalyst, but we will avoid trading the index due to the awaited fluctuation ahead of the weekly closing, while 15440.00 –yesterday’s low- offers support for the corrective waves.
Any breakout below this level will weaken 15365.00 –previous trough- and will extend the current bearish wave.
Support: 15575.00-15400.00-15365.00
Resistance: 15730.00-15800.00-15860.00
Direction: Bearish, but we avoid trading the index, as risk versus reward ratio is inappropriate.
S&P 500 has touched the proposed technical target of yesterday’s suggested scenario as seen on the provided chart.
ADX shows weakness in the uptrend, but it remains negative, but risk versus reward ratio is inappropriate.
All eyes should be on 1820.00 levels, as clearing it will expose levels below 1804.00.
On the upside, 1867.00 is the key for bulls, as it should be cleared to extend real corrective upside waves.
Support: 1820.00-1804.00-1780.00
Resistance: 1850.00-1862.00-1875.00
Direction: Bearish, but we avoid trading the index, as risk versus reward ratio is inappropriate.