17 Apr 2022 SPX Weekly - Fib 61.8

Accuracy: 15/19 (78.9%)

SPX above 4550 - Correct

Last Week

It played out pretty much as expected, the short term down trend continues forming a clean straight downwards channel.

On the daily chart, we can see Friday close right at the fib 50 levels on this current pullback. This area also has some past support and resistance. Also not forgetting this is currently right on the 50 moving average too.

On the 30 minute chart, the downtrend channel is so perfect. As we should always remember, the trend is your friend. Until there's confirmation of trend change.

Upcoming Week

We probably expect continuation of this downtrend, potentially looking at fib 61.8 levels around 4343 and the 4300 area which is also a past support turn resistance.

Do keep in mind that fib 50 lvl which is the current area is also a possible support area. Just that we have yet to see signs of support on this area yet. So for the next few days at least, I’ll stay on this short term downtrend.

Previous fib level of 38.2 around 4455 would probably be a good area of resistance if price reverses.

Economic Calendar

On the economic calendar for next week, more Fed related updates will be influencing the market especially Powell speaking.

Earnings Season

Last week we had several major banks earnings, which is one of the factor of the continued downtrend. Next week, there are many large and mega cap earnings coming.

The biggest mover definitely will be TSLA on Wed after market close. The other mega caps will come in the subsequent weeks.

My Imaginations

Just for the fun of it. If I were to imagine what could happen, I'll guess that it will start bearish to push SPX down to the fib 61.8 lvl, probably due to anticipation and Bullard speech. Follow by TSLA earnings and Powell Speech showing signs of support on the fib 61.8.

Prediction

With that, my prediction will stick to the downtrend with the upside resistance of fib 31.8 area as my safety.

SPX Below 4455