Great shorting entry point on SPX as it hits resistance
On today's CPI report, inflation rose 0.5% in January, which was higher than expected (according to CNBC), yet the market rallied.
With this rally, the market is hitting a supply zone, which was the swing high for two of the most recent swings. In the shorter term, it has also been seen that the recent rally has been rejected twice at the bottom of this supply zone, which corresponds with the 0.236 Fibonacci level, showing strong resistance. Furthermore, SPX is hitting its 300-day SMA, adding further resistance. Back in 2008 when $SPX approached its 300-day SMA after the first part of the fall, a 50% drop in the S&P 500 followed over the next year.
To trade this, I have entered a short position.
Disclaimer:
This is not financial advice, I have never worked professionally in finance in any capacity.
With this rally, the market is hitting a supply zone, which was the swing high for two of the most recent swings. In the shorter term, it has also been seen that the recent rally has been rejected twice at the bottom of this supply zone, which corresponds with the 0.236 Fibonacci level, showing strong resistance. Furthermore, SPX is hitting its 300-day SMA, adding further resistance. Back in 2008 when $SPX approached its 300-day SMA after the first part of the fall, a 50% drop in the S&P 500 followed over the next year.
To trade this, I have entered a short position.
Disclaimer:
This is not financial advice, I have never worked professionally in finance in any capacity.
Komen:
This trade continues to be desirable. With the collapse of SVB and the other banking stocks, the systemic risk of high interests could crash the whole economy (particularly unprofitable tech). I have since increased my short position