SPX: In-depth analysis and possible scenarios.
Hello traders and investors! It is Friday, and as usual, let’s do our Multi Time Frame Analysis (MTFA) on SPX, starting with the hourly chart!
The momentum is still bearish for the index, but the support around the red line (3329) is holding the price pretty well. But SPX is doing descending top, meaning the buyers are not strong enough to keep the prices up.
What could make me believe the bulls are gaining the upper hand again? When the 21 ema works as a support again, instead of resistance. It will be a great start.
Now, let’s see the daily chart:
When SPX lost this trendline, we could tell the bull trend was losing strength. The thing is that the recent movement on SPX could be a Dead Cat Bounce: A quick recovery to the 21 ema (which worked as a resistance) to resume the fall.
This will be true if SPX loses it support in the hourly chart, which will trigger a pivot point with a target at the red line in the daily chart (3280). Unless we don’t see a clear reaction, this is the natural movement for SPX.
Now, to finish our study, let’s see how the weekly candlestick closed today:
The weekly chart is giving some top signs, although the trend is still bullish. The thing is that SPX did a Dark Cloud Cover candlestick pattern, which was triggered this week, and it closed under the yellow line, which is the previous top.
Since SPX is losing strength on every time frame, the weekly chart suggests a pullback to the 21 ema, or to the purple line at 3232, which is near our target in the daily chart (3280). So, this seems to be an important price level for SPX.
These are the targets and scenarios we can work with the index, and if you made it this far, please, support this idea if it helped you! And I invite you to follow me to keep in touch with my analyses. Every day, I’ll be here to update you about the market, and you may find something helpful around here.
Either way, stay safe.
Have a great weekend!
The momentum is still bearish for the index, but the support around the red line (3329) is holding the price pretty well. But SPX is doing descending top, meaning the buyers are not strong enough to keep the prices up.
What could make me believe the bulls are gaining the upper hand again? When the 21 ema works as a support again, instead of resistance. It will be a great start.
Now, let’s see the daily chart:
When SPX lost this trendline, we could tell the bull trend was losing strength. The thing is that the recent movement on SPX could be a Dead Cat Bounce: A quick recovery to the 21 ema (which worked as a resistance) to resume the fall.
This will be true if SPX loses it support in the hourly chart, which will trigger a pivot point with a target at the red line in the daily chart (3280). Unless we don’t see a clear reaction, this is the natural movement for SPX.
Now, to finish our study, let’s see how the weekly candlestick closed today:
The weekly chart is giving some top signs, although the trend is still bullish. The thing is that SPX did a Dark Cloud Cover candlestick pattern, which was triggered this week, and it closed under the yellow line, which is the previous top.
Since SPX is losing strength on every time frame, the weekly chart suggests a pullback to the 21 ema, or to the purple line at 3232, which is near our target in the daily chart (3280). So, this seems to be an important price level for SPX.
These are the targets and scenarios we can work with the index, and if you made it this far, please, support this idea if it helped you! And I invite you to follow me to keep in touch with my analyses. Every day, I’ll be here to update you about the market, and you may find something helpful around here.
Either way, stay safe.
Have a great weekend!
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