Here´s a daily chart of S&P500. I try to keep it a simple as possible.
Here 2 different alternatives I´m watching:
* BEARISH VIEW – simmetrical triangle formation setting up. I´ll be watching the trendlines and some point of resolution around the 119.50 level, provided the pattern plays out. Generally speaking, most schools of technical analysis agree upon that this pattern, once resolved, tends to follow up on the main direction of the trend, which is down, so far.
* BULLISH VIEW -Alternatively, provided Friday highs are breached on monday, I´ll be watching the 122-124 area as a test area, where price action could consolidate before moving into another leg up. 124 also works as a confluence area of top of the ascending channel.
The levels marked in the chart (you can see my post of August 8), remain in force:
1313 – above, SPX could possibly resume the rally
1291 – first mayor test area
1261 – bull market in danger
1240 – a sustained move, could propel into bear market
Thus, until the market has a clean break of the 126 level on the SPY, my bearish bias remains on a daily basis, although will adapt to the market intraday
As of the time of writing almost 20 pt.s down (-1.57%) so, unless we the market has an important recovery, it seems the bearish view will be playing, at least for now.
I´ll reassess in the morning, but just wanted to point out some ideas and potential scenarios I´m working with.
Have a good night.