Is The US500 Due For A Bounce?

Since the high of 3028 on 26 July, price has been on a sharp decline and has declined close to the low of June 2019. Price is now close to the Fibonacci 161.8% and there is an additional support at the 3rd June 2019 low of 2728. While both momentum indicators are not showing signs of a reversal as yet, candlestick is giving a hint of a possible reversal in the form of a Hammer candlestick price pattern.

If price can stay above 2766, there is a good chance of a bounce back to the previous low point at 2866. That reaction may determine the direction for this index for the next 2 months ahead. Watch the bounce.

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