SPX: Dangerous Top Sign Under a Major Resistance Level.
• The SPX did a top sign yesterday, just after it hit its resistance at the purple trend line, which is connecting the previous tops;
• What’s more, the index lost the 21 ema. It seems Futures are stabilizing, but the situation is still problematic;
• In theory, if we don’t see a very strong bullish reaction, as soon as possible, the index would just keep correcting to the next support level, the 3,808;
• There was a gap (yellow square), which was filled yesterday, making this a possible Exhaustion Gap after the quick rally that started on Mar 13;
• So far, we don’t see any meaningful bullish reaction indicating that it will reverse, or at least reject the bearish sentiment;
• In order to avoid a bearish continuation, the index would have to react and reject yesterday’s candlestick, breaking the purple trend line in process. It all depends on how it’ll react today. I’ll keep you updated on this.
Remember to follow me to keep in touch with my daily analysis!
• What’s more, the index lost the 21 ema. It seems Futures are stabilizing, but the situation is still problematic;
• In theory, if we don’t see a very strong bullish reaction, as soon as possible, the index would just keep correcting to the next support level, the 3,808;
• There was a gap (yellow square), which was filled yesterday, making this a possible Exhaustion Gap after the quick rally that started on Mar 13;
• So far, we don’t see any meaningful bullish reaction indicating that it will reverse, or at least reject the bearish sentiment;
• In order to avoid a bearish continuation, the index would have to react and reject yesterday’s candlestick, breaking the purple trend line in process. It all depends on how it’ll react today. I’ll keep you updated on this.
Remember to follow me to keep in touch with my daily analysis!
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