For those trading /ES, SPY, and is bearish now, one of the things that we can look forward to is the possibility of the market breaking the Head and Shoulder formation again.
And hopefully, this time, if it breaks and stay down, we will have a very good target level to look forward to.
On my Ichimoku Daily Chart, SPX must hold level 1056. This is based on previous Chikou Span support levels highlighted by the pink area.
If it breaks this level, we have a target of 879.
Do note, that after breaking 1056, we still have to respect the recent low of 1010 when the index rebound almost 3% which leads to the recent rally.
Let’s hope we gets the ride down to 879.