- March 10, 2023
- Posted by: Tradingshot Articles
- Category: Stock Indices
The S&P500 is on a medium-term correction following the February 02 rejection just below the 1W MA100 (red trend-line). The long-term pattern is a Cup formation and the price is approaching its buy Zone.
Right now though it sits on the Higher Lows trend-line that has formed the medium-term Channel Up and is an ideal buy for the long-term, with limited downside. The 1D RSI is on the December Support and if the perfect symmetry with the downtrend of the Bear Cycle holds, it means it is on an the inverse path of February 22 – June 16 2022.
There are obvious Resistance Zones within the Cup pattern, while also the Fibonacci retracement levels align very well. Buy and target next the 0.618 Fib and the bottom of Resistance Zone 2 at 4300. That is marginally below the August 16 High.