SPX: Crashing again! Time to panic?Hello traders and investors! Let’s see how the SPX is doing today!
Breaking the short-term bull trend, the index is seeking its next support levels. We lost the Pennant downwards, along with the 21 ema and the 4,394. The 4,351 is another good support candidate, which is holding the price for now.
Our last support level is the 4,305, and below this point, we might assume the index will engage a stronger bearish momentum for a few weeks.
By losing the 4,305, we’ll confirm the idea that the index just did a Dead Cat Bounce to the 21 ema and it just resumed the bear trend, frustrating the possible bullish reversal to the ATH.
Right now, the index is in a “no-man’s land”. While we don’t see any meaningful bullish reaction, there’s nothing to do. While we don’t see any bearish confirmation, we can’t say it’ll reverse the long-term bullish bias either.
In the weekly chart, we are still above the 21 ema, and we could stay there for a few weeks from now, doing many frustrating signs. Only if we lost the 21 ema in the weekly chart we’ll see something new, and the market could do a sharper pullback. However, this won't be easy, as we have many support levels in the short/mid-term to work with.
For now, let’s just calmly wait for more signs. If you liked this analysis, remember to follow me to keep in touch with my daily updates.
Have a good day.
