Things are getting serious now....
The automated system is short SPX since 6,890. I continue to hold my short position since 6,937 (opened small size short and added at 6,790-6,720 break) back in January (you can read it here).
We are still not close to the 38% Fibonacci retracement of the entire upward move from the April of 2025 lows. I believe it is highly probable to reach at least that level. Ideally 5,700 would be a great bottom where we find the 61.8% Fibonacci retracement. However the 5,700 can be reached after a strong bounce and a lower high is formed. So 6,200-6,100 is the area where I will be looking to close short positions and take profits.
Gold price as expected has made new lows below February lows. In the Daily chart price has broken below the cloud support. In the weekly chart I believe we can see price testing the cloud support at $3,700.
However this is not mandatory to call the end of the correction. So far the weekly candle in Gold price is very supportive with a long lower tail. It is very important to see how Gold price performs this week and if it starts making higher highs and higher lows.
EURUSD
You will also remember me calling a decline in EURUSD when price was trading around 1.19 and the majority was calling the end of the Dollar.
Technically EURUSD is in a bearish short-term trend. Price is making lower lows and lower highs. Price is inside a downward sloping channel. Price has broken below support trend lines. Price has also broken below the Daily Kumo (cloud). My ideal target from January was the 1.12 area. EURUSD remains vulnerable to more downside as long as the short-term trades below 1.1635.
Thank you for reading my post.
Please note this is not financial advice—just my personal trading journal to share insights and organize my market thoughts. Always do your own research and trade according to your own risk tolerance.
I don’t sell any services—just documenting my journey. Remember: there’s no “holy grail” in trading. Real success comes from discipline, hard work, and constant learning.