SPX: Still in a "danger zone"! What to expect next?Hello traders and investors! Let’s see how the SPX is doing today!
First, the index is still in our “danger zone”, and the trend is still bearish. As long as it keeps doing lower highs/lows, nothing will change, and the SPX will just seek its next support levels.
The 21 ema, along with the resistance at 4,456 did a very competent job holding the price, as we expected in our previous study, yesterday:
Now, we are in a similar position again. Although there’s no clear resistance for us, we still have the 21 ema, which seems to be working again as a resistance today. However, I’ll still believe the 4,456 is more important resistance to break.
The daily chart is looking interesting right now.
Yes, we see a bullish candlestick pattern (to me it is a Piercing Line pattern), just above the support level at the 50% retracement. This is a buy sign, however, we don’t have any confirmation yet, so it is still a delicate situation.
If the index triggers this Piercing Line, we could finally escape from the “danger zone” and reverse the short-term bear trend. However, it must not lose the 50% retracement, otherwise, the 61.8% is our next stop.
The plot thickens and soon the index will have to do something interesting, either bullish or bearish. Let’s just keep in mind the patterns and key points mentioned in this analysis to guide us from here.
I’ll keep you guys updated on this, so remember to follow me to keep in touch with my daily analyses!
