The S&P Index.

Good afternoon all,

Today I thought I would post a chart of the S&P 500 index for all you who trade American shares.

As can be seen from the chart below, price is currently standing at a good fibonacci cluster reversal area with the confluences of a 123 top showing and the short term trend is down whilst medium and long term are still up.

The reason for the post is to use caution at present as although the overall trend is up resistance is now at hand and if this is broken then the recent high would then have to be overcome.

As we know the market will dictate but no long positions should be taken out now and any in force should be managed correctly and brought up to date, and patience be used for any new trades until direction is given as at the moment a retrace, consolidation or reversal could be on the cards.

If such a reversal was to take place then this could be traded accordingly with your triggers and ESLT.

Price did go down to tag its V.I. without making a swing lower low and has now got past NFP with an extremely bullish bar which did gap up slightly, but as mentioned this does not mean we are out of the woods by any means.

As always please do your own analysis before taking any trades.

Good luck for this week.

Clayton Farnworth.