The price channel seems to be relevant in the current downtrend.
Probability for downside:
1.rising virus cases (which on its own is irrelevant) combined with uncertainty about the election is making investors cautious.
2. Increasing delays in vaccine approvals and companies delaying their data.
Probability for upside.
1. a stimulus package is imminent and it's only a matter of time. No matter who wins office passing a stimulus bill will be their first agenda.
2.Investor sentiment is still bullish and I don't think we need to worry about a bubble pop until we made a new high.
I think for SPX to test the 3200 levels is not likely.
**Just an Opinion.
Probability for downside:
1.rising virus cases (which on its own is irrelevant) combined with uncertainty about the election is making investors cautious.
2. Increasing delays in vaccine approvals and companies delaying their data.
Probability for upside.
1. a stimulus package is imminent and it's only a matter of time. No matter who wins office passing a stimulus bill will be their first agenda.
2.Investor sentiment is still bullish and I don't think we need to worry about a bubble pop until we made a new high.
I think for SPX to test the 3200 levels is not likely.
**Just an Opinion.