One can't miss the fact that falling wedge has developed on SPX $ES_F futures. For that matter on all of US Stock Index Futures as well - YM_F, NQ_F, TF_F. Falling wedge is a bullish reversal pattern.
So shorts are on notice here. No need to be a hero, you got a big chunk in the middle and it is time to be thinking to give longs a chance. This said, any meaningful bounces will be met with enormous selling by all of those who now realize that this sell-off is more about the economy and less about the debt ceiling. 50 dsma is a major resistance for now, with 150dsma just above there as well. If those are not enough, just 7 points above there is a laminate of 4 waiting for longs to be met - 8dema, 21dema, 50dema, 100dsma.
We have a golden opportunity to trade both sides for a while longer. Play the retracement, and then short them again.
Good Luck!!
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