SPX: What could technically reverse the trend? Check this out!

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

First, it hit our target at 4,292, and it seems we see some reaction in this area. We identified the 4,292 as an important support level, and so far, it is working. The link to my previous analysis is below this post.

The fact the index is stabilizing in a support area is a good thing, however, it is not enough to reverse the trend. Remember: Trends persist, until a clear reversal occurs (Dow Theory 6th tenet). No clear reversal? It is still a bear trend.

However, we do have a possible reversal chart pattern, which is still in formation. We see a possible Double Bottom chart pattern, and for this pattern to be triggered, we must break the 4,333 (the peak between the valleys). This would break the 21 ema at the same time, and the target for this bullish leg would be the Breakaway Gap at 4,472 (red line).



The index is in a support level in the daily chart too, as evidenced by the black line. So far, this drop was intense price-wise, but weak volume-wise. This makes the index more vulnerable to catalysts, and the volatility might increase dramatically when this happens.

Despite the possible bottom sign in the 1h chart, we see no meaningful reaction in the daily chart that justifies a buy at this moment, but I agree that we could see one soon. If this reaction could reverse the mid-term trend as well, it is a different story.

Either way, I’ll keep you guys updated every day on SPX, so remember to follow me to not miss any of my future analyses.