SP500 Analysis – What’s next?

The last instrument in the technical part in our feed is the SP500. For the last time, we talked about this instrument on the 30^th of October, when the price was sharply going down. Despite the heavy losses, we saw a chance for a bullish reversal. That is what we wrote back then:

“Currently, the price is making a correction equality pattern (blue), so the current drop has a similar depth to this one from the beginning of the year. That can be an occasion for a reversal but I think that we should go as deep as to the yellow horizontal support around 2555 points. „

Yes, the correction equality pattern worked! The price used that as a trigger to go the other way. The bullish correction was not deep though. Actually it was quite typical as it stopped on the 38,2% Fibonacci. This is where the buyers gave up and allowed the sellers to create a strong bearish candle. 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.