The recent June FOMC meeting inflation forecast for the first time signals higher interest rates in 2023 which clearly favored the US dollar rocketing higher against other major Forex trading pairs like Euro, British Pound, Aussie dollar, Swiss Franc and Japanese Yen. Greenback also managed to rallied higher against other currencies overnight against the likes of CAD and NZD. There is a recent break-out on the DXY daily chart but halted right away on its 200 daily SMA as the resistance of course.

Now my focus will be on the S&P500 SPX index which I am seeing very deadly bearish reversal according to the technical indicators that I have personally setup. So to speak everything I am going to discuss in the remainder of this article is solely based in my own honest opinion and definitely not a financial advice!

A big sell-offs incoming for the said index which will start with a bear cross (50 day SMA crossing the 100 day) which the daily Ichimoku cloud is waiting and once it is touched, more selling pressures will be expected. Although in short time basis, supports will immediately be found there but the overall scenario will all point for a death cross (50 day SMA crossing the 200) and worst, the 100 day SMA going to cross the 200 day eventually for a more convincing price correction. Currently, all leading indicators hinting for a take profit sell signal starting with a change of control into sellers' side on the daily RSI, Stochastic RSI, DMI and MACD convergence soon to bearish as buying volumes slowly taking over.

I will take profit on the early to mid (first to second quarter) 2020 price regions which the 3,000 as the best demand zone for it was the previous resistance and will act support once the big sell-offs occuring. I will put a close or near stop loss at 4,300 mark and gonna enter at 4,200 for some quick relief trade price.

Also I have this theory that Bitcoin and the S&P500 index are somehow correlated according to the price action history in the long timeframe charts with the Greenback rising which I have mentioned at the beginning of this analysis. Therefore both trading instruments will fall and going to make same timing of price corrections before a reset in bull run.

Thanks for reading my latest analysis for today.

S&P500 Sell Offs - Technical Indicators Hinting Bearish Reversal

Jun 17 2021

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