SPX: New record and no top signs.
Hello traders and investors! Let’s see how SPX is behaving today! Our index is breaking another record, and there’s no top sign!
I’ll maintain what I’ve been telling you guys over the last month: As long we don’t see a clear reversal sign, SPX will continue to go up. But what would be a clear reversal sign?
Let’s see the hourly chart above. It is doing ascending tops and bottoms. The moment it starts doing descending tops and bottoms we will see something new. Meaning, it should trigger a pivot downwards.
The 21 ema is another good support for the price, and SPX is trading above it. Also, we can see something like a rising wedge, and if SPX loses it, the bull trend will become weaker.
If SPX triggers a pivot downwards, it will be a clearer sign of a sharper pullback. Now let’s see the daily chart:
A pullback to the purple trendline would be perfectly acceptable, but we can’t discard the possibility that SPX might hit the 21 ema, or even fill the gap around 3400, which is very close to the pre-coronavirus ATH (black line).
Of course, if this pullback will happen, we will see the signs first in the hourly chart. We need the confirmation first, before we can do anything.
And, if you’ve reached this far, please, support this idea! And follow me to keep in touch with my daily analyses!
Also, it is important to keep in mind that pullbacks are different from reversal. Pullbacks are just opportunities to buy, while reversals indicates that the trend will change.
I’ll maintain what I’ve been telling you guys over the last month: As long we don’t see a clear reversal sign, SPX will continue to go up. But what would be a clear reversal sign?
Let’s see the hourly chart above. It is doing ascending tops and bottoms. The moment it starts doing descending tops and bottoms we will see something new. Meaning, it should trigger a pivot downwards.
The 21 ema is another good support for the price, and SPX is trading above it. Also, we can see something like a rising wedge, and if SPX loses it, the bull trend will become weaker.
If SPX triggers a pivot downwards, it will be a clearer sign of a sharper pullback. Now let’s see the daily chart:
A pullback to the purple trendline would be perfectly acceptable, but we can’t discard the possibility that SPX might hit the 21 ema, or even fill the gap around 3400, which is very close to the pre-coronavirus ATH (black line).
Of course, if this pullback will happen, we will see the signs first in the hourly chart. We need the confirmation first, before we can do anything.
And, if you’ve reached this far, please, support this idea! And follow me to keep in touch with my daily analyses!
Also, it is important to keep in mind that pullbacks are different from reversal. Pullbacks are just opportunities to buy, while reversals indicates that the trend will change.
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