SPX - News lows and the follow-up
Like the rest of the market, SPX hit a new low for 2022. By doing so, it reached our price target of 3 500 USD, and therefore, we would like to provide our thoughts on this asset. We continue to be bearish in general. However, at the moment, we would like to stay on the sidelines and monitor the market.
We believe economic conditions will worsen with another rate hike in early November and the upcoming earning season. Therefore, we have little faith in the reversal of the primary trend. Instead, we believe that the bear market has not ended, and new lows will be set over time.
As for the short-term, we will look for clues indicating exhaustion within the bounce move-up. Indeed, we think the current bounce represents an excellent opportunity for repositioning on the short side.
Illustration 1.01
Illustration 1.01 shows the daily chart of SPX. If the price breaks above the sloping resistance 1, it will be bullish; the same applies to the sloping resistance 2. The failure will suggest otherwise.
Technical analysis - daily time frame
RSI, MACD, and Stochastic show signs of reversing to the upside. DM+ and DM- are bearish. Overall, the daily time frame shows signs of relief after the market became oversold in the short term.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
We believe economic conditions will worsen with another rate hike in early November and the upcoming earning season. Therefore, we have little faith in the reversal of the primary trend. Instead, we believe that the bear market has not ended, and new lows will be set over time.
As for the short-term, we will look for clues indicating exhaustion within the bounce move-up. Indeed, we think the current bounce represents an excellent opportunity for repositioning on the short side.
Illustration 1.01
Illustration 1.01 shows the daily chart of SPX. If the price breaks above the sloping resistance 1, it will be bullish; the same applies to the sloping resistance 2. The failure will suggest otherwise.
Technical analysis - daily time frame
RSI, MACD, and Stochastic show signs of reversing to the upside. DM+ and DM- are bearish. Overall, the daily time frame shows signs of relief after the market became oversold in the short term.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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