S&P500 Next Move?

Published date: 02/09/2019
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The S&P500 has been range-bound for the last 20 trading days of around 4% from 2800 to 2935 with no clear direction forming. If we just take a look at the last 20 days of trading we are in major consolidation between these levels and look to be respecting them very well. 

Fundamentally, the trade war rages on with no real end in sight, Trump continues to prop the market up with his comments, however, the market seems to have caught onto this as a load of rubbish and seem to be ignoring this. Technically, the consolidation has given the market no real direction on the daily time frame but when we look at the 4h and 1h we can see a small head and shoulders pattern showing us a bearish reversal at the top of our consolidation, staking the confluences in our favour for a potential short opportunity.

A pop above our consolidation would negate the trade and this would be most likely down to Trump and his comments regarding the trade war. I would look for this consolidation period to hold until we get a clear break out either end. 4-hour chart below. 

 

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