Week one of earnings season is almost complete, but over the next few weeks markets will continue to hear from corporate leaders dealing firsthand with current business conditions. The risk here is that markets have been too optimistic regarding the impact to business, so earnings season should give traders a better understanding of how to price equities in such uncertain times.
Technically the price is close to a crucial point the 61.8% Fib of the the 35% drop which in my opinion is a strong resistance point. Since the lows price has been rising forming a rising wedge pattern, if the "golden" resistance pushes down the price breaking the wedge on the downside the S&P might retest the lows. Price is currently at the 50 MA, expectations are for push further up into the red zone around the 2940 level. good risk/reward trade could be entering short at the break of the wedge with a StopLoss above 200MA and TakeProfit target 80% of the way to the low.
Technically the price is close to a crucial point the 61.8% Fib of the the 35% drop which in my opinion is a strong resistance point. Since the lows price has been rising forming a rising wedge pattern, if the "golden" resistance pushes down the price breaking the wedge on the downside the S&P might retest the lows. Price is currently at the 50 MA, expectations are for push further up into the red zone around the 2940 level. good risk/reward trade could be entering short at the break of the wedge with a StopLoss above 200MA and TakeProfit target 80% of the way to the low.