Despite a bullish move on September 9, 2019, the S&P 500 looks to be facing stiff resistance at 2992, due to thick presence of bears. That may trigger heavy a sell off below 2,988. No doubt that the S&P 500 has attempted one more futile attempt to cross the stiff resistance at 2,992, but exhaustion seems likely to result in the advent of a steep downward move from current levels.
Analysis
On analysis of the movements of S&P 500, in different time frames, I find that despite a bullish move on September 9, 2019, which resulted in a breakout above Ichimoku cloud on a daily chart, the formation of an “Exhaustive Candle” looks evident enough to trigger heavy sell off, which may continue till September 16, 2019.
Trading Strategies – Short Position Setup
Conservative traders would wait for a new record high to confirm the bearish reversal before committing to a short position.
Moderate traders may wait up to a sustainable move below 2,986 to filter a bear trap.
Aggressive traders may enter now or wait for a pullback up to 2,992 before creating a short position
Trade Sample
→ Entry: 2,992
→ Stop-Loss: 3,030
→ Risk: 38 points
→ Goal: 2,878
→ Reward: 114 points
→ Risk : Reward Ratio - 1:3
Disclaimer
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