SPX Daily Update (Reading The Candles + MAs)
Today's candle goes full red after a break below MA200... Bearish continuation/confirmation.
Now, notice the EMA300 grey line, recently it was tested as support.
It holds 24-Jan. and we have a bounce but this bounce ends up in a 'lower high' compared to the 4th of January.
When we see this type of price action, we know that EMA300 is going to be tested again but this time it is very unlikely it will hold.
If we had a higher high early February compared to 4-Jan., on a correction we would see a bounce at EMA300 or before (EMA100, EMA50, etc.)
But since we had a lower high now we aim at a lower low.
If for whatever reason EMA300 holds again, the support is fully confirmed and we prepare for a move up.
In conclusion, we are getting more confirmation for a price drop.
My targets are conservative, the bottom should be much lower than what you see above.
I can see we are all in agreement now...
Good.
Let it drop!
Namaste.
Now, notice the EMA300 grey line, recently it was tested as support.
It holds 24-Jan. and we have a bounce but this bounce ends up in a 'lower high' compared to the 4th of January.
When we see this type of price action, we know that EMA300 is going to be tested again but this time it is very unlikely it will hold.
If we had a higher high early February compared to 4-Jan., on a correction we would see a bounce at EMA300 or before (EMA100, EMA50, etc.)
But since we had a lower high now we aim at a lower low.
If for whatever reason EMA300 holds again, the support is fully confirmed and we prepare for a move up.
In conclusion, we are getting more confirmation for a price drop.
My targets are conservative, the bottom should be much lower than what you see above.
I can see we are all in agreement now...
Good.
Let it drop!
Namaste.
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