SPX: At the bottom of a Descending Channel.
• The index crashed again yesterday, and it lost the support at 3,949, and hit the bottom of its Descending Channel;
• What’s more, the 21 ema did a good job holding the price, as it worked as a resistance yesterday;
• Now that the index is in a support level, a bullish reaction is plausible;
• If the SPX confirms a bottom in this support area, it might indicate that it’ll look for its resistances again. Ideally, it will seek the upper trend line of its channel;
• Since the trend is bearish, a bullish reaction should be considered a bounce. In order to reverse the bearish bias, we must see a bullish reversal structure.
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• What’s more, the 21 ema did a good job holding the price, as it worked as a resistance yesterday;
• Now that the index is in a support level, a bullish reaction is plausible;
• If the SPX confirms a bottom in this support area, it might indicate that it’ll look for its resistances again. Ideally, it will seek the upper trend line of its channel;
• Since the trend is bearish, a bullish reaction should be considered a bounce. In order to reverse the bearish bias, we must see a bullish reversal structure.
Remember to follow me to keep in touch with my daily analysis!
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