SPX: Yes, the support is working as we thought. What's next?

Hello traders and investors! Let’s see how the SPX is doing today!

First, in the 1h chart, we see that it just retested the 4,480, which is the key point we’ve been mentioning for a while, and now it is trying to react. As long as it keeps above this red line and the 21 ema, the index will keep trending.

In fact, since we have this red line and the 21 ema, we can call this a dual-support level. If we actually lose it, then probably we’ll fill the gap at 4,444.



It is interesting to notice that the gap at 4,444 is very close to the 21 ema in the daily chart, making it another dual-support level in the mid-term. In the worst-case scenario, we would hit the purple line again.

For now, let’s watch carefully the red line in the 1h chart, as this is the key point for the short-term. I don't think now it is a good time to buy, but we have many other stocks that are looking great, in my view.

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Have a good day.