Last weekly candle triggered a BEARISH ENGULFING PATTERN !
Indeed, the failure to :
1) Recover above the Mid Bollinger Band 2) Hold above Kijun-Sen and Tenkan-Sen
is confirming this persisting downward pressure in this weekly time frame.
Looking ahead, it is likely to see an ongoing downside move with temporary recovery attempts in a countertrend tactical move only...
Such kind of tactical rally, should, as already mentioned several times, be monitored closely with a disciplined RR (Risk Reward) approach.
STRATEGIC TARGETS REMAINS THE FOLLOWING :
1) Retest of former low @ 4186.50 (also roughly the weekly top clouds zone and the 23.6% Fibonacci retracement of the 2'174-4'808.25 BIG RALLY or + 121 % !) 2) The bottom of the weekly clouds which also coincides with the 38.2% Fib ret @ 3'802 3) the 50% Fibonacci retracement @ 3'491.25 4) and the 61.8% Fib ret @ 3'180.25
Do you think, such kind of correction is possible ?
Honestly speaking, I think so !
Why ?
The answer is pretty simple :
Watch from where the SP500 came from (2'174) and after a performance of more than 120%, a minimum correction of 38.2% should, at least, occurs and even 50% towards 3'491.25 !
And...this would not affect the long term (monthly) uptrend.
LAST BUT NOT LEAST, AS A GENTLE REMINDER, THE MONTHLY KIJUN-SEN IS ALSO AT 3'491.25 AND ONLY A CLEAR BREAKOUT OF THAT SUPPORT LEVEL WOULD DESTROY THE ONGOING LONG TERM BULLISH PICTURE.
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