Good Evening Traders,
I hope everybody is doing good.
In this analysis, we will have a look at the SPX. We can see that the SPX is currently in a range of 2555.86 and 2684.14. However, I am expecting a break lower this week. I am expecting a hawkish FED on Wednesday in it' FOMC Statement which can be a catalyst for a move lower.
With that said, I think a break of the rising trendline from 04-02-2018 to the downside will occur this week for a retest of the 2-year rising trendline. This range play can us take for at least a few days/weeks. Having a look at the second chart which is the volatility index (VIX). You can see that the instrument is trapped in a bullish triangle pattern. As long as it stays above 14.58 it should extend higher, which will put pressure on the SPX as they are negatively correlated to each other.
I am expecting a retest of the 2593.82 trendline in the ideal case.
This view will be invalid once SPX breaks 2684.14 resistance.
I hope you enjoyed this view.
Disclaimer: Trading is about going with the highest probability, nobody is 100% right and we need to protect ourself in case we are wrong. That is why we need to always use a stop-loss when trading. Trade with care. This my current view, and any view presented is not any trading recommendation, just personal view.
I hope everybody is doing good.
In this analysis, we will have a look at the SPX. We can see that the SPX is currently in a range of 2555.86 and 2684.14. However, I am expecting a break lower this week. I am expecting a hawkish FED on Wednesday in it' FOMC Statement which can be a catalyst for a move lower.
With that said, I think a break of the rising trendline from 04-02-2018 to the downside will occur this week for a retest of the 2-year rising trendline. This range play can us take for at least a few days/weeks. Having a look at the second chart which is the volatility index (VIX). You can see that the instrument is trapped in a bullish triangle pattern. As long as it stays above 14.58 it should extend higher, which will put pressure on the SPX as they are negatively correlated to each other.
I am expecting a retest of the 2593.82 trendline in the ideal case.
This view will be invalid once SPX breaks 2684.14 resistance.
I hope you enjoyed this view.
Disclaimer: Trading is about going with the highest probability, nobody is 100% right and we need to protect ourself in case we are wrong. That is why we need to always use a stop-loss when trading. Trade with care. This my current view, and any view presented is not any trading recommendation, just personal view.
After the FOMC statement here is an update on the SPX.