There exists a graphic pattern that pertains only to S&P500. It’s logic can be laid down as following: when the index performs a V-shaped recovery, it doesn’t reach its previous maximum but, at a price about 20% short of the high, the price changes its direction and goes into another slight reversal. A possible explanation for this is that when the index enters a zone of definite recovery, market participants see this and go long. Of course, at this moment the market performs a reversal and goes in the direction opposite to most traders’ positions.
And now is precisely a moment like this!
The probable area for this reversal lies between the current price of $4360 and the support level at $4330.