SPX 02.05.2017 D1 chart.
Strong resistance level below 2400.
A pin bar is formed under the previous high at 2400.00, which is a negative signal.
DeM Sequential reaches up to 13 counts relative to the bar highs - a strong signal for increased caution.
DeM (8) in a bundled zone over 60 - negative signal, but confirmation will give a downward rotation.
Market sentiments remain positive after a series of good earnings reports from big companies. However, the levels are quite high and this is likely to be a prerequisite for caution. An additional reason for caution is the expectation of the Fed meeting, the NFP data this week and the second round of presidential elections on Sunday.
Today we expect Apple's first quarter report with high expectations. However, we must remain cautious as Apple's report last year caused a serious correction in the stock markets.
Alternatively a breakthrough in the price at key level 2400,00 will lead to an increase.
SL for short positions around 2410,00.
Trader Nikolay Georgiev
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