Dear traders,

Before we jump into the S&P 500 trading analysis, here is what happened in our last trading analysis.

This was the EURUSD trading analysis I wrote last week.

I was expecting two scenarios:

-Bullish (price breaking above the supply zone)
-Bearish (confirmation from the 4H chart and a short trading setup)

And the bearish scenario played out.

In fact, it was a textbook shorting scenario.

So, let’s have a look:

Above is the daily chart of EURUSD. As you can see, the price printed a bearish engulfing candlestick.

This coincided with an inverted pin bar from the 4H chart:

This was a great opportunity to short and the SL was very tight.

Now, if EURUSD breaks below the 1.0800 barrier, this will open up the way for huge downside potential.

Let’s see what will happen next.

S&P 500 Trading Analysis 20.03.2025

On the other hand, I am looking at S&P 500 and all other major US indices.

it looks like there is a potential that this minor correction might turn into something much bigger as I was expecting.

I wrote about it HERE.

In fact, we’ve had some amazing wins on the indices- all in the double-digit range with the highest one being a 54X trade!

That’s why I believe today serves as strong confirmation that even greater downside potential may be unfolding.

Here is why:

This is the daily chart on S&P 500.

The price appears to be retesting a major supply zone, which signals potential bearish momentum—especially if it fails to close above the zone.

For now, I’ll be watching the 4H chart for potential shorting opportunities if they present themselves.

These would be any candlestick formations that imply further bearishness.

Here is the 4H chart:

There was a great bearish engulfing candle on the 4H.

I missed that but some of my students are already in a short trade.

I will be looking for a potential retracement and then reconsider a shorting opportunity.

The next major level is miles away, so this could be a great opportunity.

Let’s patiently wait and see if it will materialize.

Happy trading,

Colibri Trader