Will this happen again? Oil reverses SPX follows
From the year 2018, it happened 5 times Oil reversed to the downside from 2 to 7 days before the SPX. On the daily chart, those reversals are marked with arrows and vertical lines.
Is this time different? We already had an uptrend line breakout on Oil while SPX continued upside. Now the Oil is retesting a broken uptrend line with a great possibility of a rejection and downside continuation and SPX is touching the rising wedge resistance line for the third time aligned with the 3330 level. This is making a baseline scenario for an ABC correction on SPX and a new swing down on Oil.
SPX target is 3200 at least, while the Oil target is 55.
Funded trader 50k account
60%to 40% profit splitTaking this all together you should be looking for the short trades on both of the instruments, and when we add Gold bounce into an equation we have an early sign of the possible risk-off positioning in the next few weeks.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. For more trades get our Trading strategy report for 2020.
Happy trading! (click on the chart to enlarge it)
Managed accounts with the risk sharing
Managed accounts with the risk sharing




