SPX: Trend Analysis + Key Points to Watch From Here.
• The SPX is trading inside an Ascending Channel in the 1h chart. Today it is losing momentum, indicating that it could seek the bottom of this channel;
• Yesterday, the index failed in breaking the 4k, which is its most important key point. By breaking the 4k, we would see a bullish pivot point in the 1h chart, indicating that we could seek the higher line of this channel;
• If it loses this channel downwards, then it is very likely that it’ll seek its support at 3,808, which we mentioned in our previous analysis (the link to it is below this post, as usual).
• The problem is that in the daily chart, the trend is still bearish. There’s a purple trend line connecting the previous tops, and it seems it worked again yesterday;
• As long as the index remains under this purple line, the SPX won’t do any meaningful bullish reversal pattern;
• What’s more, there’s no clear bullish reversal structure in the daily chart yet. Yes, there’s a bottom at 3,909, which is higher than the previous one at 3,808, but without a higher high, the trend will remain bearish;
• Therefore, it is very important to watch how the index is going to react now that it just hit its major resistance in the daily chart, and if it’ll break its pivot point in the 1h chart;
• This is a defining moment for the SPX, and I’ll keep you updated on this, as usual.
Remember to follow me to keep in touch with my daily analysis!
• Yesterday, the index failed in breaking the 4k, which is its most important key point. By breaking the 4k, we would see a bullish pivot point in the 1h chart, indicating that we could seek the higher line of this channel;
• If it loses this channel downwards, then it is very likely that it’ll seek its support at 3,808, which we mentioned in our previous analysis (the link to it is below this post, as usual).
• The problem is that in the daily chart, the trend is still bearish. There’s a purple trend line connecting the previous tops, and it seems it worked again yesterday;
• As long as the index remains under this purple line, the SPX won’t do any meaningful bullish reversal pattern;
• What’s more, there’s no clear bullish reversal structure in the daily chart yet. Yes, there’s a bottom at 3,909, which is higher than the previous one at 3,808, but without a higher high, the trend will remain bearish;
• Therefore, it is very important to watch how the index is going to react now that it just hit its major resistance in the daily chart, and if it’ll break its pivot point in the 1h chart;
• This is a defining moment for the SPX, and I’ll keep you updated on this, as usual.
Remember to follow me to keep in touch with my daily analysis!
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