Fed head Powell just admitted that a recession is a possibility!
This means I gotta keep an eye out for this short opportunity on the S&P 500 index.
Here are the pullback levels on my radar:
Picking up on the bear market vibes lately?
This equity index has been forming lower highs so far this year, and it looks like another test of the descending trend line is due.
The handy-dandy Fibonacci retracement tool shows that this falling resistance zone is right around the 61.8% level and the key 4,000 mark.
To top it off, the area of interest is right smack in line with the dynamic resistance at the moving averages!
The 100 SMA has managed to stay below the 200 SMA after a failed attempt at a bullish crossover. This means that sellers still have the upper hand and could keep the downtrend going.
Bears might even be excited to jump back in since Stochastic is already on its way down from the overbought region. This could mean that a shallow pullback is in the cards, leading the index to find sellers at the 50% Fib that’s closer to a former support level.
In any case, make sure you keep your eyes and ears peeled for any headlines that impact risk sentiment!
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