Analysis: SP500 still overbought - chance for a short position in the Fibonacci fan

Analysis: SP500 still overbought - chance for a short position in the Fibonacci fan

According to a report by www.finanzen.net, the SP500 is in the area of ​​4,566 points premarket and is heading towards the upper Fibonacci fan in the weekly chart at 4,600 points. It is expected that the SP 500 could reach a high after the strong run-up since the low of 4,105 points. The SP500 remains overbought and speculation is rife as to whether it can break above the upper Fibonacci fan to generate another strength signal.

The current situation of the SP500 shows that it has risen sharply since the low of 4,105 points without a real correction. Should the SP500 break through the upper Fibonacci fan, it would be another signal of strength for market participants. An alternative would be for the SP500 to bounce back down in the area of ​​the Fibonacci fan and face a retrace. This would mean that the 10 EMA in the weekly chart will initially start at 4,400 points. In this case, a short position in the area of ​​the Fibonacci fan is recommended, which according to the report by www.finanzen.net would consider a speculative short position on the SP500 in the area of ​​4,580 points.

The impact of this development can be noticeable, especially for investors speculating on the SP500. An upward trend could mean profits for investors, while a downward rebound could result in losses. It is important to monitor developments closely and consider possible scenarios.

A speculative short position is recommended with a Best Unlimited Turbo (SF80M3) from Société Générale, with the price target in the area of ​​4,400 points and the stop should be placed at 4,610 points, according to the report from www.finanzen.net.

It is important to note that any investment decisions should be carefully considered and that risks are always present. Before making a possible investment in the securities mentioned, the relevant and legally exclusive securities prospectus should be read thoroughly in order to obtain as comprehensive information as possible.