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S&P500 (ES) Testing 38.2% Fib Retrace of Aug-Oct Slide

S&P500 (ES) Testing 38.2% Fib Retrace of Aug-Oct Slide

Posted October 25, 2022
Darren Chu
Tradable Patterns

S&P500 (ES) Testing 38.2% Fib Retrace of Aug-Oct Slide

The S&P500 (ES) is consolidating after the bounce in the past week, pausing as it bumps against the October high.  Odds are suddenly high for a Dead Cat Bounce to continue for much of November, and for a test of the psychologically key 4k whole figure level by early November.  Nevertheless, the current Dead Cat will likely be weaker in magnitude relative to the late June-late August one.  Watch for volatility with the release of today’s 10am EST US CB consumer confidence, Thursday’s US advance GDP and Friday’s US core PCE price index.  Monitor as usual for further escalation in the Ukraine-Russia conflict.  Congratulations to paying subscribers who benefited from the February 18, 2020 analysis one day before the record high in the ES, warning of the pending slide in the S&P500.  The weekly and daily RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains.  I am looking to enter long in the green zone (of the daily chart), targeting the red zone for Monday.  The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).  Click here for analysis on NASDAQ100, EURUSD

Source: Interactive Brokers TWS

Sample of Today’s Top 3 Trades Available to Free Subscribers (published Apr 14, 2021

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