The US500 is currently still in a long term downtrend however is currently attempting to reverse this scenario. If the current Monthly candle establishes a green candle, the demand imbalance will be confirmed with a likely run to Supply Above. The following two upside scenarios could occur: US500 will make it's way back to supply where a large reaction can be expected with a run back down to demand in a double top scenario which was not yet captured at 3200. Or US500 will run to the market maker discount zone and promptly turn around and grab demand around 3200.
Alternatively if December fails to establish a demand imbalance and turn's around, we can expect a run to 3200 with capitulation selling along the way as the Bears stay firmly in control of the Long Term Downtrend.
It is worthy to Note that the US500 has not given up the Zero Momentum line on the Monthly chart and this is an area will the market will hold and rally to a target or capitulate to lower targets.
Alternatively if December fails to establish a demand imbalance and turn's around, we can expect a run to 3200 with capitulation selling along the way as the Bears stay firmly in control of the Long Term Downtrend.
It is worthy to Note that the US500 has not given up the Zero Momentum line on the Monthly chart and this is an area will the market will hold and rally to a target or capitulate to lower targets.