The 30-minute chart price pattern with a large gap down in price on Tuesday morning created what we call a “Gap Window”. Almost all gaps in the SP500 get filled eventually, and both the top and bottom areas of a gap window become short-term resistance or support.
A three-wave a-b-c correction is generally what causes stop orders to be run, panic selling, and creates a pivot low. This is displayed with a red line on the chart.
If this very short-term pattern unfolds it would create fantastic entry point because several different types of analysis come into play at the same time and price. The green 20-day simple moving average and our short-term cycle projection would act as support and a cycle low.
Trending Now
Read Next
Investing Strategies
U.S. investors pulled a record $8.8 billion from sustainable funds in Q1
Steve Kerch
May 2, 2024
Economic
The Earth is falling to pieces and it’s connected to climate change
Steve Kerch
May 1, 2024
Private Investments
Women provide fintech startup Ansa with most of its new $14 million funding
Steve Kerch
May 1, 2024
Investing Strategies
7 stock picks for ESG-conscious investors
Faizan Farooque
Apr 29, 2024
Economic
Does ‘virtue signaling’ pay off for entrepreneurs? What a study of 82,000 Airbnb listings says
The Conversation
Apr 26, 2024
Environment
How to investigate toxic lead lurking in your community’s soil
Grist
Apr 26, 2024
The Latest
Investing Strategies
U.S. investors pulled a record $8.8 billion from sustainable funds in Q1
May 2, 2024
Economic
The Earth is falling to pieces and it’s connected to climate change
May 1, 2024
Private Investments
Women provide fintech startup Ansa with most of its new $14 million funding
May 1, 2024
Investing Strategies
7 stock picks for ESG-conscious investors
Apr 29, 2024