SP500 Stalling at the top of the range.
Currently the SP500 is doing a double top and stalling at the top of the range. In spite that the index has already broken the range to the upside, there has been no follow up. So it starts to look like a weak trend. Most probably it will attempt a sell of to gain momentum at a lower level.
In the meantime this means that there could be volatility in the market. So I'm focusing on the volatility instruments.
UVXY is doing a double bottom at the 3.40 level. The momentum is increasing, creating a positive momentum divergence, which signals a possible reversal to the upside.
My forecast is an entry area depicted in the chart. A target area above the 4.0 level and a possible (very optimistic) extended target below the 5.0 level.
In the meantime this means that there could be volatility in the market. So I'm focusing on the volatility instruments.
UVXY is doing a double bottom at the 3.40 level. The momentum is increasing, creating a positive momentum divergence, which signals a possible reversal to the upside.
My forecast is an entry area depicted in the chart. A target area above the 4.0 level and a possible (very optimistic) extended target below the 5.0 level.