الأربعاء، 2 يوليو 2014

SPX ready to correct and form a Left shoulder?

Yesterday SPX almost touched our target of 1980 (http://goldenopportunitytrading.blogspot.co.uk/2014/03/a-deja-vu-for-spx.html). SPX is getting overbought at daily and weekly timeframes (RSI>70) with negative divergence especially in daily RSI.








 VIX probably is forming a diamond reversal pattern, which means increased volatility for the next days-weeks, consistent with a deep correction.


















We believe that SPX is almost ready for a substantial correction towards bellow 200 EMA(weekly) around 1750.

If this scenario finally plays out, 1980 will probably be the left shoulder of a huge Head and shoulders pattern for SPX.


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