Weekly Forex Trade Setups & Key Levels | Aug 23-28

S&P 500 – Major Support Base Broken, Bearish Bias (daily chart)
Dumping 180 points in the last 4 days, the S&P 500 has broken through a major support base at 1969 which has held all of 2015 and since November 2014. I’m suspecting major stops have been tripped here, so unless the hand of god (read Central Banks) start rescuing the index, we should expect further losses.

The first key role reversal zone comes in between 1969 and 1987 so I’ll be looking to get short here. Only a daily close back above 2K negates this short term bearish bias.

Downside 1894 and 1824 are the next targets before short covering will likely take place.

spx 500

Nikkei 225 – 6 Month Support Base Broken (daily chart)
Crashing also ~2000 points in the last few days, the Nikkei 225 has opened and sold from the get-go. In this process, the Japanese index has cratered through the key support base around 18975.

For now, bias is clearly bearish while below this zone on a daily closing basis. Bears should be looking to get short at key role reversal levels, especially on weak corrective pullbacks. Downside the first target for any trade setups is 18045 while losing 18K would put 16600 into focus.

nikkei 225

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