$4,900 a historic moment

Yesterday, the SPX closed above $4,900 for the first time in history. Now, the question is, can it close above this level for multiple consecutive days? If yes, it will be positive for the index. However, a breakdown below $4,900 will be slightly concerning. Similarly concerning will be if RSI, MACD, and Stochastic start reversing to the downside on the daily graph. As a result, we will keep monitoring the situation and update our thoughts on the asset with the emergence of new developments.

Illustration 1.01

Illustration 1.01 shows the daily chart of the SPX and simple support/resistance levels.

Illustration 1.02

While waiting to see what path the SPX will take, we want to note that investors’ confidence seems to be eroding in the Chinese markets despite the announcement of new stimulus measures in the last two weeks.

Technical analysis gauge
Daily time frame = Bullish
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Its purpose is purely educational.