SP 500 is one of the most followed indexes on Wall Street and worldwide financial markets.

SP 500 has made its move towards the over exhaustion of bullish pressure. It needs to take a pullback. What we anticipate is that market has to come down towards the $4300 level. Our position for shorts would be at the resistance price at $44490. SP 500 has formed a lower low and is on the brink of forming a lower high. Hence, confirming the bearish structure.

SP 500 has been in an ascending channel. The resistance channel was tested and the support channel has been broken out for breakout sells. Although the breakout sells have not been validated yet. But according to the structure, we can still consider it a breakout sell if the pullback is triggered.

The 75-78.6% retracement level is in confluence with the resistance level. This golden area also implicates the trendline breakout sells. If price action reflects a bearish pressure from the retracement level, we will have an added confirmation for shorts.

Both the EMA’s are currently bullish as prices are above both the EMA’s. EMA 50 was pierced for the bear run but then again, was pulled up above the EMA 50. EMA 200 is still far off and could be considered as a potential profit target.

RSI is at 48 level, which is a bearish region. CCI is at 24, which is near its neutralized levels and in a bullish region. If the market starts pulling up towards our short levels, we will see oscillators get into the bullish region and maybe, over bought region as well. Once market reaches the over bought situation, we will add it to the factor of our short position.

SP 500 has mixed views right now. The only thing we are looking at is the structure, which needs to be respected for us to short the market. Once market closes above the resistance, we will close all positions.

SP500 for shorts

Sep 27 2021

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