- Harmonic pattern – Bearish AB=CD pattern
- Potential Reversal Zone (PRZ) – 2425.
- S&P500 is consolidating around 2400 for the past five trading session. The index hits the all-time high of 2418 on 25th May 2017 and is trading around narrow range between 2418 and 2402. It is currently trading around 2413.
- In the daily chart the index has formed potential Bearish AB=CD pattern and is expected to get completed at 2425.Any break above potential reversal zone will take the S&P500 till 2445 (161.8% retracement of 2407 and 2345).
- On the lower side, major support is around 2400 (89- 4H EMA) and any break below will drag the index till 2385 (200 – 4H MA)/2345 (May 18th 2017 low).
It is good to sell on rallies around 2425 with SL around 2445 for the TP of 2385/2345.
