SPX: The most important points to keep in mind!
Hello traders and investors! Let’s study S&P 500 today!
Yesterday SPX did what could be a Breakaway Gap, since it opened above the previous resistance, which is the black line at 3,323, and right now it is doing a pullback.
The black line, which was a previous resistance, now works as a support, according to the Principle of Polarity in Technical Analysis. Also, the 21 ema is another support to keep in mind.
If we see a reaction around this level, SPX could defeat the green line at 3,359 and fill the previous gap, or even retest the 3,425 again (blue line).
On the other hand, this might not be a Breakaway Gap. Let’s look at the daily chart now:
The resistances are still visible from here, but along with the green line, the 21 ema is also another resistance for SPX right now.
If SPX fails in defeating its resistances, it might lose its supports in the hourly chart, meaning that this gap is not a Breakaway, and a retest of the 3,200 would be the next step for the index.
During this rally, the volume was lower than the average, and this is something that bugs me. Also, the 21 ema is still going down, and as long SPX trades under it, it will remain in bear territory.
So far, there’s no clear reaction, but if SPX defeats the resistances previously mentioned will be a start. And if this idea helped you, please, support it! And follow me to keep in touch with my daily analyses!
I wish you all the best of luck.
Yesterday SPX did what could be a Breakaway Gap, since it opened above the previous resistance, which is the black line at 3,323, and right now it is doing a pullback.
The black line, which was a previous resistance, now works as a support, according to the Principle of Polarity in Technical Analysis. Also, the 21 ema is another support to keep in mind.
If we see a reaction around this level, SPX could defeat the green line at 3,359 and fill the previous gap, or even retest the 3,425 again (blue line).
On the other hand, this might not be a Breakaway Gap. Let’s look at the daily chart now:
The resistances are still visible from here, but along with the green line, the 21 ema is also another resistance for SPX right now.
If SPX fails in defeating its resistances, it might lose its supports in the hourly chart, meaning that this gap is not a Breakaway, and a retest of the 3,200 would be the next step for the index.
During this rally, the volume was lower than the average, and this is something that bugs me. Also, the 21 ema is still going down, and as long SPX trades under it, it will remain in bear territory.
So far, there’s no clear reaction, but if SPX defeats the resistances previously mentioned will be a start. And if this idea helped you, please, support it! And follow me to keep in touch with my daily analyses!
I wish you all the best of luck.
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