Short-Term Forecast: Potential Rebound to 4910 Before Downtrend
Current Status:
The S&P 500 is currently at 4843 and showing signs of a short-term uptrend. However, my analysis suggests that this upward movement may be temporary.
Analysis:
CCI Divergence: The analysis is anchored on the Commodity Channel Index (CCI) divergence, indicating a potential weakening in the current uptrend. This divergence often serves as a precursor to a change in market direction.
Fibonacci Levels: Employing Fibonacci retracement levels, I anticipate the S&P 500 to reach the 3-point Fibonacci level at 4910 before resuming its downward trajectory. This level acts as a potential resistance point where the market could encounter selling pressure.
Forecast:
Short-Term Rebound: Expect a short-term rebound to the 4910 level as the current upward momentum continues.
Downtrend Resumption: Following the potential rebound, I anticipate a reversal in the market sentiment, leading to a resumption of the downtrend.
Target: The primary downside target is the lower Fibonacci level at 4325, providing a potential support level for the S&P 500.
The S&P 500 is currently at 4843 and showing signs of a short-term uptrend. However, my analysis suggests that this upward movement may be temporary.
Analysis:
CCI Divergence: The analysis is anchored on the Commodity Channel Index (CCI) divergence, indicating a potential weakening in the current uptrend. This divergence often serves as a precursor to a change in market direction.
Fibonacci Levels: Employing Fibonacci retracement levels, I anticipate the S&P 500 to reach the 3-point Fibonacci level at 4910 before resuming its downward trajectory. This level acts as a potential resistance point where the market could encounter selling pressure.
Forecast:
Short-Term Rebound: Expect a short-term rebound to the 4910 level as the current upward momentum continues.
Downtrend Resumption: Following the potential rebound, I anticipate a reversal in the market sentiment, leading to a resumption of the downtrend.
Target: The primary downside target is the lower Fibonacci level at 4325, providing a potential support level for the S&P 500.