On November 21st I commented about the potential movements of the S&P 500 and it took scenario 1 with a bull candle and went higher. It has broken all my #WAWS resistance lines and traded higher. Yesterday we saw some selling pressure coming into the S&P 500. The question now is that, is this the top for now?
If this is the top, I would expect the S&P 500 to come down a bit and trade till 2164 – 2133 area in which it will find support and trade higher there after. The 2248 should be a likely area in which S&P 500 would stall a bit. So make that one of your target areas. However due to the nature of movement of the current market, I would be looking closely at 2213 area as target one after S&P 500 hits 2164 – 2133.
The mandate above is invalidated if
a) price does not retrace from the current top to my said levels and continue to trade above 2213.
b) price totally reverses and breaks 2084. By then the sellers would have outbid the buyers.