Good afternoon guys,
Markets are looking fairly stretched. We may have entered a day too early on the USD positions. Going to be using slightly wider stops so reduce your leverage and calculate risk correctly.
I am now looking to go short on the SP500. Check out the analysis below:
Previously I highlighted a 5 wave structure higher, however where I had the 5th wave initially may have been the 3rd wave. We may have now seen the complete 5 wave structure suggesting there may be a pull back today.
SP500 4 Hour Charts
5 Wave structure higher finishing with a bearish divergence on the RSI.
SP500 2 Hour Charts
There has been a break of the trend line followed by a retest of the trend line.
Trade Setup: SELL Market Execution, current price 2952, stop loss 3020 and take profit left to run but targeting 2860 -2820.
Stop loss: 68 pips
Take Profit: 92-132