InvestMate|S&P500 Double Top = Declines📉

📉S&P500 Double Top = Declines

📉As I wrote in a previous post about the possibility of declines to around the levels of a very strong support zone.

📉 I could not have predicted that the market on the news of the latest US inflation readings would open such a large upward gap and score a double top.

📉 All of today's growth has been absorbed and my outlook for declines remains unchanged.

📉 The fact of the double peak has only confirmed my downward scenario and reinforced the likelihood of it happening.

📉The support zone was set in the previous post.

📉 But I will write again on what basis I determined it so that you do not have to look for it.

📉 It has been determined by a cluster of as many as 4 fibo levels. The first is the 0.382 level of the entire upward wave from the bottom to the last peak. The second is the 0.5 level of the same wave. The third is the 0.382 level of the entire upward wave from covid bottom to ath. The fourth level is the 0.236 level of the entire upward wave from the 2009 bottom to the ath peak.

📉 Looking at the MACD a continuation of the falls looks more likely than the rises.

📉 Same for the RSI on which there was a strong downward divergence.

📉 The scenario I am playing out is a continuation of the declines and a test of the vicinity of the support zone levels where I will watch to see how the price reacts. I'm aware of the possibility of a correction at any time, this should be taken into account, If the outlook changes I will publish a post with an update, so I encourage you to actively follow the profile and read the description carefully.

📉*Please do not suggest the path I have outlined with lines it is only a hypothetical scenario.

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