S&P500 made its highest high again, breaking the previous major resistance at 4357 last Thursday, turning the weekly resistances into daily resistances and supports. The daily pivot shifted its position at 4371 acting as an immediate barrier in any further bullish breakouts. CCI showing over bought conditions for S&P pointing towards a near by correction maybe is on its way. At 4344 we have our weekly pivot which will act as an immediate support in this regard for it also is a strong price action in terms of experiencing volatilty and breakouts on both the bullish and bearish courts. Though on 8th July most of the traders wouldve assumed that the correction has been completed at 4289, but if that was the case then i think we are entirely wrong in terms of corrective waves principles, which is that wave 'b' never exceeds wave 'a' which can actually be seen at the same date. So that mightve been a temporary dip for the RSI and CCI to correct itself from the overly bought zones. 

BULLISH & BEARISH CONDITIONS/POSSIBILITIES :

In worst case scenario, i fear that the market might be into a minor degree of 5 wave bullish structure at the moment and there is still room for minor 5th wave to take place which will eventually set a parameter of highest high in S&P500 again and that is possible if we have a breakout above the previous days price action i.e where our daily pivot is. We are in favor of more bearish sentimenets from current market price and our expectations are for the S&P to channel itself down towards EMA50 first i.e 4327 and further our prioritized temporary destination at 4300, that is where our lower trend line is to the bullish channel. A breakout below or an exit from the channel with a strong bearish impulse would suggest us to position our trades in dovish stance with our target destination at monthly pivot i.e 4248. Second of all one of the major point is that the S&P500 has created divergence which can be clearly obeserved from the RSI and HH created on chart, so we will be expecting a sell off soon. 

S&P500 H4

Jul 12 2021

Stop Loss -0.37%

Holding time 1hr

4359.86

Entry price

4376.11

Stop loss price

1