Hello traders and investors! Let’s update our thoughts on the SPX today!
First, in the 1h chart, it filled the previous gap at 4,411, and now it seems the index is seeking its next support at 4,365 (red line). If this drop was reasonable or not, it doesn’t matter, but I find it curious that it did a Breakaway Gap today. This usually means panic.
Either way, the support at the red line is the most important one, and we must focus our attention there. When we look at the daily chart, we have more clues:
Coincidence or not, the red line in the 1h chart is at the same price level the 61.8% retracement is in the daily chart. This makes this point a very strong support, and it won’t be easy for the SPX to break it.
If we do lose it, the index could easily drop more 90-100 points to its next support area. However, I’m personally skeptical of any movement here, as the volume is still low.
All we can assume is that this is a bear trend, and as long as it stays under the 21 ema, doing lower highs/lows, it won’t reverse again. Let’s focus on its support levels for now, and see what happens.
Either way, I’ll keep you guys updated, so remember to follow me to keep in touch with my daily analysis.
First, in the 1h chart, it filled the previous gap at 4,411, and now it seems the index is seeking its next support at 4,365 (red line). If this drop was reasonable or not, it doesn’t matter, but I find it curious that it did a Breakaway Gap today. This usually means panic.
Either way, the support at the red line is the most important one, and we must focus our attention there. When we look at the daily chart, we have more clues:
Coincidence or not, the red line in the 1h chart is at the same price level the 61.8% retracement is in the daily chart. This makes this point a very strong support, and it won’t be easy for the SPX to break it.
If we do lose it, the index could easily drop more 90-100 points to its next support area. However, I’m personally skeptical of any movement here, as the volume is still low.
All we can assume is that this is a bear trend, and as long as it stays under the 21 ema, doing lower highs/lows, it won’t reverse again. Let’s focus on its support levels for now, and see what happens.
Either way, I’ll keep you guys updated, so remember to follow me to keep in touch with my daily analysis.
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