SPX: Still BEARISH, but these patterns could REVERSE the trend!
Hello traders and investors! Let’s see how the SPX is doing today!
Yesterday’s reaction was quite good, but as we thought, not enough to trigger a real reversal. We pointed to the 3,979 (black line) as the main resistance to break, and not surprisingly, this point was yesterday’s high multiple times before it melted today. The link to my previous analysis is below this post, as usual.
As long as the index remains under the 3,979, it won’t trigger a proper reversal sign, in the short-term. If it breaks the 3,979, it’ll probably fill the last two gaps and hit the 4,090, another important key point, as we’ll see next.
In the daily chart, we are still under our purple trend line, so the trend is still bearish. If we break this line, we might see something new, but only the breakout of the 4,090 would trigger a mid-term reversal in the daily chart, as this is the breakpoint of a (possible) Double Bottom chart pattern.
If the index triggers this Double Bottom, the 4,500 would be our next stop, but for now, we have many challenges to overcome: The 3,979, the purple trend line, and the 21 ema in the hourly and daily charts. Right now, I'm neutral on the index, but if it reacts properly, it could be a buy again. Only time will tell.
Since we are near a support level, we must pay attention to these key points this week. I’ll keep you guys updated every day on this, so remember to follow me to keep in touch with my future analyses!
Yesterday’s reaction was quite good, but as we thought, not enough to trigger a real reversal. We pointed to the 3,979 (black line) as the main resistance to break, and not surprisingly, this point was yesterday’s high multiple times before it melted today. The link to my previous analysis is below this post, as usual.
As long as the index remains under the 3,979, it won’t trigger a proper reversal sign, in the short-term. If it breaks the 3,979, it’ll probably fill the last two gaps and hit the 4,090, another important key point, as we’ll see next.
In the daily chart, we are still under our purple trend line, so the trend is still bearish. If we break this line, we might see something new, but only the breakout of the 4,090 would trigger a mid-term reversal in the daily chart, as this is the breakpoint of a (possible) Double Bottom chart pattern.
If the index triggers this Double Bottom, the 4,500 would be our next stop, but for now, we have many challenges to overcome: The 3,979, the purple trend line, and the 21 ema in the hourly and daily charts. Right now, I'm neutral on the index, but if it reacts properly, it could be a buy again. Only time will tell.
Since we are near a support level, we must pay attention to these key points this week. I’ll keep you guys updated every day on this, so remember to follow me to keep in touch with my future analyses!
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