In the weekly chart we observe another touch on the expanding triangle. I am trading the following scenarios:
1) Short. If this scenario is right, expect considerable retracement, following the direction of the red arrow. For me, it is the most likely scenario right now, and I am in aggressive short in SPX500 futures, and long in VIX.
There is very clear bearish RSI divergence on the weekly chart, in an expanding structure.Stop above 3040 for the following week.
2) Long. If the expanding triangle is broken to the upside, in the retest of the trendline is time to go long. Be ready, this could very well happen.
The R:R for this trade is stunning. I will take partial profits if the downtrend is confirmed at important supports. 2967, 2800 and I would turn eventually long with stops below the long term trendline.
1) Short. If this scenario is right, expect considerable retracement, following the direction of the red arrow. For me, it is the most likely scenario right now, and I am in aggressive short in SPX500 futures, and long in VIX.
There is very clear bearish RSI divergence on the weekly chart, in an expanding structure.Stop above 3040 for the following week.
2) Long. If the expanding triangle is broken to the upside, in the retest of the trendline is time to go long. Be ready, this could very well happen.
The R:R for this trade is stunning. I will take partial profits if the downtrend is confirmed at important supports. 2967, 2800 and I would turn eventually long with stops below the long term trendline.