SPX: Doing a REVERSAL pattern!Hello traders and investors! Let’s see how the SPX is doing today!
First, in the 1h chart, we see that it is reacting nicely, after yesterday’s crash. This is a good recovery, and might be the beginning of a reversal, the problem is that we don’t see a clear bullish structure yet, and the index is still in a bear trend, doing lower highs/lows.
In the 1h chart, we see no technical reversal pattern yet. I think it is good to see it breaking the 21 ema, but I would be happier to see a good chart pattern indicating a reversal.
However, in the daily chart, something interesting is happening:
We might not have any reversal chart pattern in the 1h chart, but we do have a reversal candlestick pattern in the daily chart. Yesterday, we had a Hammer pattern, which was triggered today. One may argue that Hammers are not that reliable, but in my experience, when this pattern appears just above a support, the chances of a reversal are greatly increased.
The support level was at 4,167, and today, the index is breaking this point. If we close above it, even better. The volume looks ok, which confirms a bullish thesis. Now, we can expect the index will retest its 21 ema in the daily chart again.
Even considering it could do a pullback in the 1h chart (and I prefer to see this happening), the index is giving us some interesting technical reversal signs. What could ruin this reversal? If it loses yesterday’s low.
I’ll keep you guys updated on this, so remember to follow me to keep in touch with my daily analyses!
