SP500 (Y20.P4.E1.v4).Key level.The decider

Hi All,

*** This is another continuation post (v4) from the previous version, as per my posting methodology where I like to link the trading story where its applicable ***
Link supplied below:


MY THOUGHTS:
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Points of confluence:
Indicators:
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> show downward pressure still present, along the daily, to the weekly charts;
> on the daily chart, indicators show downward pressure. If we see the phoeix rsi cross over with a potentially a bullish candle, then it will slow down the downward pressure;
The next few days or week will give us a clue.
> macd approaching signal for either a bounce\rejection which is likely to be at this 0.382 fib level as per chart or cross over for more downward momentum;
Price action:
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On the Daily chart, we have the 21 & 50 EMA merging at the neckline of the inverse head and shoulder formation, along with the 0.5 fib retracement, making it a definite case for bulls to jump in.
> I expect this level to have strong support, bulls jumping in.

As discussed in previous posts, scenario 1 has completed. Now if the orange support area doesn't hold or this neck line, then we will have scenario 2 with a deeper correction;

Charts to watch\signals
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As they have correlations > DXY (US dollar), Volatility\Uncertainty index, VIX, US Treasury Bonds,

Please give me a like or tick for this post.


Regards,
S.SAri


VIX S&P

TLT bonds

Daily chart

Weekly perspective

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12 hrly chart, small bullish div. Daily has sideways pressure

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Neckline touched and created a wick on the daily. 2 touches on the daily should confirm support level. Downward pressure on the daily is leveling off which could indicate support and reversal...we need to see the next few days.

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As it seems, scenario 2, with a deeper correction