This formation happened right at the falling moving averages, Fibonacci retracement area, and the August swing low around the minor psychological area of 4350.00. So, it’s actually no surprise that bulls and bears were battling it out to a stalemate in early October, trying to figure out where to go next.
The market is now breaking that area, but will it be enough to draw in sellers and refresh the downtrend lower?
Of course, we’ve got to consider that this could be a fake out in the making, with buyers starting to scoop the dip and turn the October bounce into an actual reversal move that could push the market back to the strong resistance area around the 4500.00 major psychological area.
As always, it’s the news headlines, economic data and market narratives that will determine who wins out between the bulls and the bears, so it’s probably a good idea to keep up with market flows by checking out our Daily News and Watchlist posts, economic calendar and Event Guides before picking a bias and working on your risk management plan!
منبع: https://www.babypips.com/trading/forex-charts-2023-10-18
At the moment, it looks like the bears are gaining control as we can see a break out of the diamond to the downside, which may draw in more sellers and keep the downswing going.
S&P 500 Index (US500 CFD) Chart by TradingView
We just saw a rare diamond pattern on the S&P 500 index, forming along with several other technical arguments of interest.
