SP500 H4 - Our expectations
It seems that the impact of the crisis in Turkey has been more concentrated on European markets, while US futures remain in the ascending channel of last week. The current retracement gives us the possibility of short-term profits to the en of working week.
The price is in upward trend, after correction to a key support level. A basic diagonal + horizontal is supported, supported by a 23.6% Fibonacci correction of the main trend. Price Acton - Formation "abandon baby" at support levels. In addition to Price Action, the price behavior of a smaller M5 chart, clearly shows that bulls take precedence, as rises are sharp and high at the expense of small and sustained declines. 50 and 200SMA are beaded and the price remains below the 50-year period. DeMarker points upwards from a surplus sales area, near a record low during upward movement - a positive signal.
Given the location of the price, as well as the damp foundation around Turkey, I expect a peak test to reach last week. At the beginning of the US session, we will most likely witness the allocation of capital from the health sector for the fine of nearly $300m. of Monsansto, whose product Roundup has been found to cause cancer.
SL: 2814.49
Alternative Scenario: If the price goes back below the support area and stays there, the positive scenario will be spoiled and more likely to see a fall in the index price.
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