I’ll keep this brief. The SP500 has broken its downtrend and closed with buying pressure last week, which is a positive sign. It has also closed back inside the weekly uptrend. However, more buying pressure is needed for the SP500 to reclaim its trend and confirm a change in the short-term trend. According to my custom Fibs as support and resistance, the level of 4200 is where price has struggled to clear. Breaking through this price level would be great for the market and confirm that we will continue to make new highs at least for the next few weeks (not all-time highs, just local higher price action).
On the other hand, if the SP500 opens with a lot of selling this week and ends up closing outside of the uptrend, we may be seeing further downside much sooner. Bitcoin has already taken a hit, indicating that institutional selling has likely begun at key levels (distribution). If this is the case, it could lead to a bloodbath for ALTs. Let’s see how Monday and the rest of the week unfold.