As the whole market is red since this week, so is the indice market. S&P 500 is in the downtrend, forming lower lows and lower highs. Also, the market is continuosly breaking its support levels. Earlier, it broke its strong support level at 4000, which now has turned into a resistance. This resistance will be our short area after the confirmation of the rejection, till the lower support level where we will profit ourselves.We will be taking the shorts from 4030. 

The descending trendline has been tested and may continue up till the resistance + retracement level. This maybe a fakeout as this is the bearish trend we are in. Whereas, on the ascending trendline, we are still waiting on the breakout sell for another confirmation on the contiuation towards the downtrend.

The retracement level 75-78.6% is in confluence with the resistance level. This area is going to act as a strong foothold for the continuation down.

Both the EMA's are bearish with a bearish death cross. There is a probability that at the resistance level, we might tap the EMA 50 as a retest. Then, we will have 3 confluences at the resistance to take a short position.

Oscillators present a bullish divergence on both the rsi and cci. Currently being in a bearish region, we anticipate that the divergence has the tendency to push the market up towards the resistance. At that level, we will see the market at the over bought region and also in confluence with other technical factors.

The trend on SP 500 is bearish and the technical factors at the resistance price of 4080 really favor the idea of a short position from this region.

Another opportunity to short SP500

May 25 2022

Stop Loss -1.71%

Holding time 1d17hr

4025.25

Entry price

4094.17

Stop loss price