S&P500’s newfound downtrend threatens a further sell-off towards April 2024 lows.

As a result, my May 9’s preset long trade plan has exited in another loss after holding for less than an hour:

https://www.finlogix.com/analysis/20240509/sp500-intraday-analysis-for-may-9-2024

An overall updated record of 2 wins and 3 losses.

The US is set to have 1 remaining high impact economic report on Thursday.

The major world indices in general including the S&P500 have started the intraday trading in green after yesterday’s extended sell-off but struggles to push higher.

Re-assessing the S&P500’s high timeframe candles:

Yearly Candle: Last check is a Green Body with a Longer Head Wick now a Green Long Upper Shadow with a Medium Body

Monthly Candle: Previous close is a Green Semi Doji current is a Red Body with a Longer Tail Wick

Weekly Candle: Previous close is a Red Body with a Longer Head Wick current is a Red Long Lower Shadow

Daily Candle: Previous close is a Red Long Lower Shadow current is a Red Shooting Star

I will be using a lengthy swing low to high move from April 19 to July 17 as the retracement points of view to undermine S&P500’s real motive to where to go next after losing multiple key levels since the start of the new down trend.

If the lower high trendline depicted above persists, there is more room for a downward retracement targeting the unfilled orders towards April 19 external lows.

At time of writing this analysis, S&P500 is trading and holding above the retracement points’ 61.80% fib level after bouncing from 78.60% yesterday.

Apparently, the buyers struggle to move higher intraday towards the next 50% fib level because it contains the break of structure that led to a strong sell side liquidity run!

Until I see a retest and break on this BoS then S&P500 can nullify its newfound downtrend.

I will short the next possible relief rally towards the 50% fib level where the recent strong sell side liquidity run is part of.

I will put a tight cut loss only just a few points above the 38.20% fib level while taking profit towards the April 19 external low sweep. 

Note: Finlogix pricing is set from the ACY Securities price feed, with liquidity being sourced by top tier banks via ACY Connect.

All trade ideas I share are my own views and for my own trades only.

S&P500 Intraday Analysis For August 6, 2024

Aug 06 2024

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