SP500: opportunity for short from key levels

Instrument: SP500
Chart: H4

The downward impulse remains in force after the price failed to close the 50% downward wave correction from the top and the horizontal resistance at the levels around 2730. The price recorded a lower peak forming a flag formation. Sales at the end of the stock exchange session led to activation of the formation, which gives us a good opportunity for positioning with short positions and goal, a bottom test at the beginning of the week.

Entry options are two as soon as the Asian markets open at 01:00 or after a 50% correction of the Signal Bar (H4). In addition to the negative scenario, Dem (8) rotates and exits the overpurchase zone – a price-negative signal.

SL: 2755

Alternative Scenario: If the price passes and stays in several consecutive bars above the resistance zone, the negative scenario will wreck and we are more likely to see a rise in the index.

Jr Trader Petar Milanov

 Varchev Traders

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