SPX: The Beginning of a Dead Cat Bounce.
• The SPX stabilized yesterday, but this move isn’t enough to stop the bearish sentiment;
• In the 1h chart, the index remains bearish, as it is below the 21 ema and there’s no bullish reversal structure around;
• In the daily chart, yesterday’s candlestick was positive, but yesterday's reaction was very weak, and it didn’t occur near a support level;
• Even if the index bounces, there’s the 21 ema in the daily chart to work as a resistance, and it would be very hard to completely reject Tuesday’s drop - a.k.a. Dead Cat Bounce;
• Technically speaking, it seems the index is poised to seek lower levels, the next technical support is at 3,949;
• In order to avoid this bearish continuation, the index would have to do a very good bullish reaction as soon as possible – so far, no bullish reaction at all. I’ll keep you updated on this.
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• In the 1h chart, the index remains bearish, as it is below the 21 ema and there’s no bullish reversal structure around;
• In the daily chart, yesterday’s candlestick was positive, but yesterday's reaction was very weak, and it didn’t occur near a support level;
• Even if the index bounces, there’s the 21 ema in the daily chart to work as a resistance, and it would be very hard to completely reject Tuesday’s drop - a.k.a. Dead Cat Bounce;
• Technically speaking, it seems the index is poised to seek lower levels, the next technical support is at 3,949;
• In order to avoid this bearish continuation, the index would have to do a very good bullish reaction as soon as possible – so far, no bullish reaction at all. I’ll keep you updated on this.
Remember to follow me to keep in touch with my daily analysis!
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