Critical point

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/04/20180403-SP500.png” description=”The weekly chart of S&P 500 already showed a flag, precisely a bear flag. While the market is moving down, it encounters a strong support around 2,550 (+/-25). However, we keep seeing lower lows and lower highs, so the bearish trend will remain and this support cannot sustain for a long time. Once the market breaks down the support, our wave amplitude calculations indicate that the downside target will be 2,462.” source=”http://www.economicsignature.com/wp-content/uploads/2018/04/20180403-SP500.png” title=”Critical point”]

The market is at a critical point. The weekly chart of S&P 500 already showed a flag, precisely a bear flag. While the market is moving down, it encounters a strong support around 2,550 (+/-25). However, we keep seeing lower lows and lower highs, so the bearish trend will remain and this support cannot sustain for a long time. Once the market breaks down the support, our wave amplitude calculations indicate that the downside target will be 2,462.

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