S&P 500 IndexShort
Bearish Momentum Follow Through
Updated
On Monday I made a divergence trade called on ascending triangle, and today it broke the short term upward trend (ascending line) and touch the 20MA, once 20MA break we expected the momentum to touch the 232X to 233X area.
This formed a trap pattern where traders who long around 2380 and above are trapped. If 2375 to 2382 area are breached, the bearish momentum will halt. With pricing decline with volume surge, high probability the price will plunge further to meet its demand at a lower price.
This formed a trap pattern where traders who long around 2380 and above are trapped. If 2375 to 2382 area are breached, the bearish momentum will halt. With pricing decline with volume surge, high probability the price will plunge further to meet its demand at a lower price.
Note
Correction: 50MA instead of 20MA
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