S&P 500 has been on a bumpy road recently. After the recent down wave, market moved up forming higher highs and higher lows. On a higher timeframe, the trend is still bearish. But given that on H4, market has marked up, we will wait for the retest at the resistance level at 4550 to take a short. 

The ascending trendline has been pierced and is due for a retracement. The validation of the candles has been confirmed. The breakout sells with the trendline will be confirmed once the market is retraced on the fibonacci.

The golden retracement area stands still with confluence of the resistance level. As mentioned earlier, the breakout sells have been confirmed with the trendline breakout. Now, this retracement level holds importance for the short selling.

EMA 50 is in a ranging trend where as, EMA 200 is still bearish and is due a retest after the breakout sell. The resistance level will confluence with the EMA 200. If market retests this resistance level, we will have multiple technical confirmations.

Oscillators RSI and CCI are in a bearish region. Two scenarios can be formed with this trade setup on oscillators.

1- Either the oscillators drag up to the over bought range and form a bearish divergence, which would be in confluence with the resistance level, we will have an added short factor.

2- Or the oscillators are neutralized at the resistance level where other factors are in confluence.

Once market breaks the resistance level of 4550, we will take a small stop loss.

S&P 500 shorts from 4550

Feb 06 2022

Stop Loss -1.80%

Holding time 2d17hr

4498.64

Entry price

4579.42

Stop loss price