S&P500: Sell opportunity on the 0.5 Fib rejection.

The index is having a week long rally since the 2,180 low fueled by the Fed stimulus package. So far the rise has stopped on the 0.382 Fibonacci (measured from the All Time Highs) and is pulling back.

For the moment this is still within the 4H Channel Up of this week (RSI = 56.474, MACD = 39.010, ADX = 40.896) but if it breaks it should target the 4h MA50 at 2,410 and even make a full retracement to 2,200.

The confirmation to take this sell will by the bearish cross on the MACD. See also how similar this is with the March 5th cross and in fact the two sequences are similar even on the Fibonacci scale. We have separated them into Phase 1 and Phase 2, both of which retraced to their 0.500 Fibonacci and got rejected.




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