S&P500 Likely To Correct Further To 2000 Level

The ongoing correction in S&P500 index that started on Nov 4th is still not showing any signs of completion. Given the downward momentum, the S&P500 is likely to correct further to 2000 level in the coming week. The Sell signal is firmly in place, and long positions must be avoided till Buy signal comes. If the S&P500 index takes support around 2000 level, and reverses to close above 2020, then aggressive traders can consider a new long trade till 2050. However, a clear buy signal may come only above 2050, if it were to happen in the coming week. Traders with short positions can continue till 2000-2010 levels, which is another 10-20 points. If S&P500 index closes below 2000, then fresh downsides will open up, and fresh short trades can be started.

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