SPX: Will the bull trend resume?

2020년 9월 9일

Hello traders and investors! Let’s see how SPX is behaving today! It is going up nicely, but what does this means? Will SPX resume its bull trend, or is it just a short rally?

First, the hourly chart is quite bearish, and yesterday, SPX just hit one of its previous supports around 3329, and now it is retesting its 21 ema. If we see another bearish pattern around, the short-term bear trend will prevail.

We need to see SPX doing a clear bullish sign before thinking about buy it again. Could be a bullish chart pattern, a bullish pivot, it doesn’t matter. But right now, we lack clear signs.

If SPX loses its red line, it would trigger another pivot, and the targets for it are better seen from the daily chart:



It is clear that the bull trend got weaker after SPX lost its purple trendline, and today’s movement could be a pullback to the 21 ema to resume its drop. After all, nothing goes up or down forever.

If SPX triggers the pivot point we mentioned earlier, on the hourly chart, its natural target would be the red line at 3280.

As long it keeps under the 21 ema region, it is just a short rally. But it is interesting is that it is trading above the black line, which is the pre-covid All Time High, and it still seems to be an important psychological point to the index.

Would this reaction be a short rally, or will the bull trend resume soon? We will have our answers soon, and if you liked this idea, please, support it! And follow me to keep in touch with my daily analyses! I’m sure you’ll find something interesting around.