Odds are stacking up for a breakDOWN in S&P500 & friends
Previously noted that on a particularly critical day, the S&P500 closed below expectations thereby giving heads up of the near term imminent downside. This morning (UTC+8), in the ES1! Hourly chart, we can see a potential double top of the rebound. The next few hours in Asian trading time would be critical, and we expect a path of lower lows and lower highs to follow (guided by the yellow line on the chart). A support level is drawn with an s,era as it serves as the first indication of the floor giving way.
Watch it for the minimal downside target drawn previously as the bright red ellipse. This should be validated after breaking the immediate support and a series of Lower Highs, and Lower Lows follow.
Technically, the MACD suggests at the double top is likely to hold, as opposed to a breakout above the resistance at 3130. There is a slight bearish divergence which should deliver today.
Watch it for the minimal downside target drawn previously as the bright red ellipse. This should be validated after breaking the immediate support and a series of Lower Highs, and Lower Lows follow.
Technically, the MACD suggests at the double top is likely to hold, as opposed to a breakout above the resistance at 3130. There is a slight bearish divergence which should deliver today.
