Given the large drop overnight on the SP500, today should see some extreme volatility to continue, particularly because the SP500 is retracing now. Trade with caution and with the trend, but have in mind that the price action may be choppy on the NYSE open. The market started to digest the view that the US Fed may hike three times this year, thus compressing prices in Equities as Funds and re-positioning from risky-assets like Equities and into Fixed Income like Bonds.
Technical analysis shows a possible rejection from both POC zones 2630-35 and 2700-2720. However pay special attention to 2500-2530 zone. Its the historical support + Daily 200 SMA. This is a significant level that might cause buying, temporarily on a intra-day or intra-week level.
W H1 -. Weekly Camarilla Pivot (Interim resistance – Weak)
W H2 – Weekly Camarilla Pivot (Weekly resistance)
W H3 – Weekly Camarilla Pivot (Weekly resistance – main)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
W L4 – Weekly Camarilla Pivot (Interim support – Strong)
W L3 – Weekly Camarilla Pivot (Interim support – Main)
W L2 – Weekly Camarilla Pivot (Interim support)
W L1 – Weekly Camarilla Pivot (Interim support – Weak)
POC – Point Of Confluence (The zone where we expect price to react aka entry zone)
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