Summary
· The technical picture is pretty clear. The Index broke down from a 2 year rising channel earlier this month. Then, the index was sold off to 1,820 and now rallied back to 1,960 in order to re-test the breakdown level.
· Assuming this technical setup is valid the Index should start drifting lower from here. My target is 1,761 and is the 38.2% Fibonacci retracement level of this 2 year rising trend which stands at 1,761. A 38.2% is a reasonable and healthy corrections
Strategy: Short 2 units from 1,960, target 1,761 with a stop on a daily close above 2,000 (short from yesterday, GTC sell order at 1,960 triggered)
Daily chart
US INDEX TECHNICAL TRADE IDEAS
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