SP500 Analysis

In the last Analysis, I mentioned about a possible Head and Shoulder Formation. This formation is clearly invalidated now. The pattern was there and moreover the neckline was broken text book perfect. The market played it's trick and continued the other way. On the other side, we are still not out of the woods as the price has NOT broken out of the Resistance Zone (shown as a red box). A vague 1-5 elliott wave count can be detected and the market is higly overbought (many traditional indicators confirms it). It is not a time to go LONG in my opinion and we need a strong down -thrust breaking the trend (in blue) for possible short entries. I would recommend to stay away from the index at this moment and wait. Good Trades