SPX: Just wait for a BREAKOUT - We are still in a congestion!Hello traders and investors! Let’s see how the SPX is doing today!
Yes, we are still in a congestion, in the 1h chart, trading between the resistance at 4,168 and the support at 4,073. The 21 ema is flat, another indicator of congestion.
Since the previous bias was bullish, the odds are that it’ll continue the bullish momentum, but it must confirm by breaking the 4,168, and in this case, the target is the 4,300. Only if we lose the 4,073 the bullish structure will be frustrated.
I added a new pattern in the daily chart, a Flag pattern (purple lines), which is a continuation pattern (most of the time). The key points for this Flag are the same I mentioned in the 1h chart.
The index is still above its 21 ema as well, which is pointing upwards right now. The 4,090 was the trigger point of a Double Bottom chart pattern, another reversal pattern.
All these structures indicate that the index is in bullish territory, and it’ll remain bullish until it loses its supports or does a clear technical bearish reversal pattern (which we don’t see at the moment).
For now, the situation is under control. I’ll keep you guys updated on this every day, so remember to follow me to keep in touch with my daily analyses!
