E SPX, Bitcoin, Gold, Oil And G6 Targets For The Week Of March 2nd

Last week we cautioned that a break below 3325 will lead to a retest of uptrend support. Weeks of ignoring the corona virus lead to panic selling and the SPX broke through several support levels to finish the week in bearish territory:

To put things in perspective, the chart below does a good job of quantifying the level of technical damage sustained by the market during the last week. It also helps identify similar occurrences in the past. It shows a clear distinction between pre and post ’09 levels:

Market breadth spent the week declining further until Friday, when it staged a modest rebound. Naturally, the question now is whether this rebound will lead to a significant oversold bounce, or whether the SPX will decline further before a meaningful upside move materializes, like it did in May ’19:

Although we can’t predict the future, or news flow over the week-end, we can nevertheless identify the key levels to keep an eye on when trading resumes. A break above 3000 will bring the SPX back within the Neutral zone, while a drop below 2880 will provide more fuel for the panic:

The sell-off in the major indices reverberated in other asset classes as well, and all of them exceeded their normal targets. Both Gold and Oil took a big hit. USD declined against the CHF, JPY and EUR, but gained against AUD, GBP, CAD and BTC.

For OIL, GOLD, BTC and G6 weekly targets and Buy/Sell pivots, check the TV page which gets updated on Monday.

*Please note that the signals are provided for informational purposes only. They are in effect as of the close on Friday and may change as soon as the markets re-open.

Charts, signals, targets and data courtesy of OddsTrader, CIT for TradingView and NinjaTrader 8. For intraday charts and update follow us on TradingView.

Disclaimer: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money ...

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