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Commodity
by Seth Parker on November 8, 2018

SP500 Analysis – Impressive reversal

Time to update our view on the SP500, which for the last time, was mentioned here on the 5th of November, so not so long ago. In our previous piece, we were bearish but as you probably know, the price is climbing higher. Did anything change here? Well, our view in the longer term is still bearish but the local upswing is really impressive and it seems that in the short-term, buyers will be controlling the situation. OK, let’s see how we concluded the previous analysis:

“Situation is still promoting a further slide. Similar setup happened here at the beginning of the year. As you can see, the slide was stopped for a while but after some time, the price made new lower lows. This can happen here too. In my opinion, the next few weeks should be negative. „

sp500 chart

This week’s trading allowed the SP500 to create the inverse head and shoulders pattern. On Tuesday, the price broke the neckline of this formation (black) and came back above the up trendline (green). Wednesday’s reaction on that was kind of euphoric and the price climbed significantly higher. With all this, the current sentiment has to be positive. Before going full buy mode here, remember that at the beginning of the year, it all looked the same and still, price managed to make new lower lows.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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