SPX: Dangerous Correction - What's Next?
• The SPX has been correcting since it hit our target, the technical resistance around 4,170, but it seems it is stabilizing above the 21 ema;
• We set this target on my previous analysis (the link to my previous public analysis is below this post, as usual), before the SPX confirmed its bottom, when it was still below the 21 ema in the daily chart;
• Now we see a bullish reaction above the 21 ema, which is a bullish sign, however, the 1h chart suggests that a bullish reversal won’t be that easy:
• The SPX is struggling to break the 21 ema, which is working as a resistance level, short-term speaking;
• If this resistance works, and we see a top sign confirmed, the index could correct to lower levels, like the 4,049, the next support line in the 1h chart;
• In order to see a bullish continuation to the 4,200 it would be good to see the SPX breaking the 21 ema in the 1h chart, and doing a clear bottom signal in the daily chart as well;
• For now, there’s no clear bullish reaction, so let’s wait for more confirmation.
I’ll keep you updated on this. Remember to follow me to keep in touch with my daily analysis.
• We set this target on my previous analysis (the link to my previous public analysis is below this post, as usual), before the SPX confirmed its bottom, when it was still below the 21 ema in the daily chart;
• Now we see a bullish reaction above the 21 ema, which is a bullish sign, however, the 1h chart suggests that a bullish reversal won’t be that easy:
• The SPX is struggling to break the 21 ema, which is working as a resistance level, short-term speaking;
• If this resistance works, and we see a top sign confirmed, the index could correct to lower levels, like the 4,049, the next support line in the 1h chart;
• In order to see a bullish continuation to the 4,200 it would be good to see the SPX breaking the 21 ema in the 1h chart, and doing a clear bottom signal in the daily chart as well;
• For now, there’s no clear bullish reaction, so let’s wait for more confirmation.
I’ll keep you updated on this. Remember to follow me to keep in touch with my daily analysis.
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