Last week, price saw a strong pullback, in which pushed the price back to test the 50% of the channel trend. Despite that, price still rejected a move higher but instead headed even lower. Now price is testing the final of the , which spans back to the first correction in February of this year. If the market rejects a breakout lower, look for a potential reversal.
Exhibit 1: IG Client US500 Positioning
Exhibit 2: XM Client US 30 Wall Street Positioning
Exhibit 3: IG Client Sentiment
Bullish Reversal: Price rejects a move lower, look for a potential swing to the topside of the channel. Profit levels to look for are 2830.00 & 2930.00 respectively.
Bearish Breakout: Price breaks the channel trend, look for consolidation below 2670.00.