SPX priming for Christmas Rally but from what level?
Dont be fool by recent euphoria just because FOMC pause rate hike, the bigger problem is with US treasury inability to issue long term bond that is why they issue short dated treasuries instead of long term bond is more worrisome than geopolitical risk.
Technically speaking SPX tend to revisit its Head & shoulder neckline resistance twice before the washout happen symbol in red "T1" & "T2"
last week recovery from 4100 to 4668 zone is 61.8% fibo retracement target which is the DOUBLE HEAD & SHOULDER neckline resistance extended since 2021 (green dotted line) area serve as an oppoortunity to go short for a an impulsive third of third swing lower towards 3600 is where we will get our "CHRISTMAS rally" back up to close the year above 3885 projected to close the yeard around 3995/4045 & then to resume its weakness towards 3400 by end of Februaary 2024
Technically speaking SPX tend to revisit its Head & shoulder neckline resistance twice before the washout happen symbol in red "T1" & "T2"
last week recovery from 4100 to 4668 zone is 61.8% fibo retracement target which is the DOUBLE HEAD & SHOULDER neckline resistance extended since 2021 (green dotted line) area serve as an oppoortunity to go short for a an impulsive third of third swing lower towards 3600 is where we will get our "CHRISTMAS rally" back up to close the year above 3885 projected to close the yeard around 3995/4045 & then to resume its weakness towards 3400 by end of Februaary 2024
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