SPX is reaching a strong upside extension resistance of 5350. This is a long-term channel top and is reached in five waves. It means we are at the end of the five waves higher long and short-term and it has been reached in sharp rising wedges. A rejection here and a break below 5240 will open a strong pullback and a test of the most important support 4700. Learn to Trade Indices profitably.
How to trade this?
It is a fact that a strong upside resistance for Q3 2024 is 5340. If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success. Long trade entries are possible only on a confirmed price-action break above 5340. You can try a short trade here with a stop loss above 5300 but upon a break below 5240. The short-trade entry has a better Risk to reward. For inquiries about account management please write to [email protected].
The Weekly SPX chart reveals an addition to the previously mentioned important wedge breakout looming. As the long-term charts imply, at this point look for the short trade entries or sell positions building upon a break below 5240 as they have a higher probability of success. We will need to see a big break above 5340 to see an extension higher, an invalidation of the complete downside reversal, and an end of the five long-term waves.
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As the famous trader says…
“I always laugh at people who say, ‘I’ve never met a rich technician.’ I love that! It’s such an arrogant, nonsensical response. I used fundamentals for nine years and got rich as a technician.”Martin Schwartz
How to trade this?
It is a fact that a strong upside resistance for Q3 2024 is 5340. If we get a confirmed break here we could see a strong upside continuation and new highs. Near-term, short-trade entries have a higher probability of success. Long trade entries are possible only on a confirmed price-action break above 5340. You can try a short trade here with a stop loss above 5300 but upon a break below 5240. The short-trade entry has a better Risk to reward. For inquiries about account management please write to [email protected].