FxWirePro: S&P500 forms potential Bearish CD pattern, good to sell on rallies
Harmonic pattern – Bearish AB=CD pattern Potential Reversal Zone (PRZ) – 2445. S&P500 winning streak is on hold after hitting high of 2440 on Jun 2nd 2017 and is consolidating around 2425 and 2440 for the past two tradin…
S&P500 winning streak is on hold after hitting high of 2440 on Jun 2nd 2017 and is consolidating around 2425 and 2440 for the past two trading session. It is currently trading around 2430.
In the daily chart the index has formed potential Bearish AB=CD pattern and is expected to get completed at 2445.Any break above potential reversal zone will take the S&P500 till 2457 (161.8% retracement of 2401 and 2321).
On the lower side, major support is around 2392 (daily Kijun-Sen) and any break below will drag the index till 2359 (89 EMA)/2345 (May 18th 2017 low).
It is good to sell on rallies around 2440-2445 with SL around 2457 for the TP of 2390/2359.
