SP500 broke below the weekly support one 4487 after failing to maintain its consolidative structure above the resistance turned support. The bearish momentum was strong enough to convince SP500 to move towards our next major support zone 4300 - 4346, followed by bullish reversal because of high supply demand zone at 4300. The generated bullish momentum can also be witnessed being supported by 61.8% and 50% fibo retracement levels which prevented SP500 from moving any lower. From the current market scenario, the indice has managed to hop above the exponential moving average 50 and Senkou Span A of the ichimoku cloud, a bullish fractal above the aforementioned would indicate that SP500 would rallying towards its daily resistance at 4487. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

SP500 has taken an exit from our bullish channel but is being supported by strong technicals at the current market price action, indicating that a breakout above our interday (four hour time frame) upper trend line would trigger the continuation of bullish rally, sending the SP500 indice higher for new yearly record gains. On the bearish side if SP500 fell weak on being supported by the bulls and the bears drove the indice lower below 61.8% and 50% fibo zones, will be taken as a fractal for bearish confirmation of trend with targeted destination at 4232 and 4157 i.e 38.2% and 23.6% fibo levels. The bearish rally if triggered after a break out below the aforementioned support zones - can also adapt to dovish sentiments by flirting with exponential moving average 200 in the daily time frame at 4125.

SP500 PREPARING FOR A BULLISH RUN

Sep 28 2021