Indices Long Term Current and Past Portfolios
Under the most bullish scenario (shown in green, 70%), the sell off last week has put in place the right shoulder for a sizable inverse head and shoulders pattern. After a minor sell off on Monday and a successful test of 50 D-SMA, SPX rallies through its immediate resistance band to reach new all time highs by Thursday or Friday.
Under the most bearish scenario (shown in red, 30%), after an unsuccessful attempt to punch through resistance at 1870, selling picks up momentum and continues to test 100 D-SMA, recent low (1814) and PUL for SPX around 1800. A weekly close below PUL would be game changer and would signal a high probability of significant selling ahead.
Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation. Furthermore, the opinions expressed may change without notice.
SPX tried hard to get through the 1870-1890 resistance band last week, but by Friday it gave up, sold off, tested its 20 D-SMA and closed slightly above it.
Under the most bullish scenario (shown in green, 70%), the sell off last week has put in place the right shoulder for a sizable inverse head and shoulders pattern. After a minor sell off on Monday and a successful test of 50 D-SMA, SPX rallies through its immediate resistance band to reach new all time highs by Thursday or Friday.
Under the most bearish scenario (shown in red, 30%), after an unsuccessful attempt to punch through resistance at 1870, selling picks up momentum and continues to test 100 D-SMA, recent low (1814) and PUL for SPX around 1800. A weekly close below PUL would be game changer and would signal a high probability of significant selling ahead.
Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation. Furthermore, the opinions expressed may change without notice.
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