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Friday, January 19, 2024

SP500 - A pullback is imminent

SP500 - A pullback is imminent

We've witnessed a robust rally in Q4, just as I anticipated. Currently, I am mostly in cash, awaiting an opportune moment for a swing entry. My medium-term plan includes the following considerations:

I've identified several reliable selling signals on my indicators for the weekly timeframe. However, in the short term, I believe the market still has some upward potential, possibly reaching levels between 4900-4950 before experiencing a substantial drop to 4500-4600.

Therefore, my weekly resistance is set at 4900-4950, aligning with a cycle high timeframe around mid-February (12-16). Additionally, my weekly support is at 4500-4600, corresponding to a cycle low timeframe around the end of March. These weekly strong levels provide an expected timeframe for potential swing highs and lows.

Looking at the shorter timeframe (from now until mid-February), I anticipate a dip by the end of January, followed by a bounce through February, potentially reaching my weekly resistance levels as depicted on my chart.

That's all for now. I'll provide updates in this post on any potential setups


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