Trade Alert: Buy This Dip On The S&P 500
On the back of comments from the US Federal Reserve Chair Jerome Powell stating that the further interest rate hikes are on the cards as the result of the strong US economy, US markets have continued to tick lower.
The S&P 500 is down from 2780 on Tuesday 27-February, having found resistance at the 61.8% Fibonacci retracement level.
Looking at the daily chart, we shave seen a rising wedge pattern emerge, where the price has given a bearish break out of the wedge. My previous experience with this pattern informs me that the breakdown is often accompanied by a re-test (bullish leg).
I am looking at an opportunity for traders use this dip to take a short term buy/long position on the S&P 500 index.
Chart: S&P 500 Cash Index
Buy at current levels 2663/65
Take Profit: 2760/2780