Hello traders and investors! Let’s see how the SPX is doing today!
Yesterday, we talked about the 4,148, and how this was our key support level for the short-term. This understanding proved correct, as the moment we lost it, the market dropped sharply, and today, we almost hit the previous support at 4,062. If you missed my previous analysis, just check the link below this post.
However, the index is trying to react now. By breaking the 4,148 (and staying above this price for a while), the bearish momentum will get weaker. If it breaks the 21 ema, even better. This is not a reversal sign, but it could be in the future, as we don’t have any bullish structure in the 1h chart right now. It is interesting that the 4,148 is working as a resistance now, following the Principle of Polarity.
Let’s see the daily chart:
In the daily chart, the index is trying to do something positive. For the second time, we see a Hammer candlestick pattern (of course, the day is not over yet, so this pattern still could be ruined if we see a strong bearish reaction).
This reaction is interesting, and it is happening just above an interesting support, which we’ll talk about when we look at the weekly chart.
However, this reaction is good, but not great. I would be more optimistic if the index breaks the 4,167 again (black line).
Now, let’s take a look at the weekly chart:
The index is stabilizing at its support area, which is interesting. The support level the index found in the daily chart is seen in the weekly chart, which is the area around the red line at 4,059 (May 2021 bottom). Meaning, the index is trying to find a bottom at its 52-week low.
We still have a possible Head & Shoulders chart pattern, which was not triggered. If this happens, the index will trigger a long-term bear trend. The only thing it could do to avoid this scenario would be reacting next week, doing a strong and positive candlestick, preferably, closing above 4,167.
To sum up, the market is not looking good, neither to buy nor to sell, but it could be a buy again, if it breaks the key points mentioned in this analysis. I’m neutral on the index, but that doesn’t mean that we don’t see opportunities around. Many stocks are reacting amazingly well, but the index has yet to confirm its movements.
I’ll keep you guys updated every day on this, so remember to follow me to keep in touch.
Yesterday, we talked about the 4,148, and how this was our key support level for the short-term. This understanding proved correct, as the moment we lost it, the market dropped sharply, and today, we almost hit the previous support at 4,062. If you missed my previous analysis, just check the link below this post.
However, the index is trying to react now. By breaking the 4,148 (and staying above this price for a while), the bearish momentum will get weaker. If it breaks the 21 ema, even better. This is not a reversal sign, but it could be in the future, as we don’t have any bullish structure in the 1h chart right now. It is interesting that the 4,148 is working as a resistance now, following the Principle of Polarity.
Let’s see the daily chart:
In the daily chart, the index is trying to do something positive. For the second time, we see a Hammer candlestick pattern (of course, the day is not over yet, so this pattern still could be ruined if we see a strong bearish reaction).
This reaction is interesting, and it is happening just above an interesting support, which we’ll talk about when we look at the weekly chart.
However, this reaction is good, but not great. I would be more optimistic if the index breaks the 4,167 again (black line).
Now, let’s take a look at the weekly chart:
The index is stabilizing at its support area, which is interesting. The support level the index found in the daily chart is seen in the weekly chart, which is the area around the red line at 4,059 (May 2021 bottom). Meaning, the index is trying to find a bottom at its 52-week low.
We still have a possible Head & Shoulders chart pattern, which was not triggered. If this happens, the index will trigger a long-term bear trend. The only thing it could do to avoid this scenario would be reacting next week, doing a strong and positive candlestick, preferably, closing above 4,167.
To sum up, the market is not looking good, neither to buy nor to sell, but it could be a buy again, if it breaks the key points mentioned in this analysis. I’m neutral on the index, but that doesn’t mean that we don’t see opportunities around. Many stocks are reacting amazingly well, but the index has yet to confirm its movements.
I’ll keep you guys updated every day on this, so remember to follow me to keep in touch.
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