SPX: Is it a good buy now? Trend analysis.Hello traders and investors! Despite the drop, the index is doing exactly as the technique said it would, and we talked about this yesterday (link to my last analysis below). Is this a good buy now that it is dropping? Let's see what the technique has to say.
In the 1h chart, it lost the 21 ema, and it quickly filled our gap (blue square), making it an Exhaustion Gap and it is seeking the next target at 4,500. The trend is not bullish in the short-term anymore, and it still has more room to correct. We lack bullish structures that could turn it bullish again, and we have nothing but bearish signs over here.
Let’s see the daily chart:
In the mid-term the trend is still bullish. The bearish sentiment in the short-term is creating a pullback in the daily chart, which is not ruining the main trend. All the bearish signals it gave us in the 1h chart just created the first pullback since Mar 15, and to me, the index needed this correction. It went up too much, too fast.
It would be acceptable to see the index back to its 21 ema, and the trend would still be bullish. In fact, any bullish reaction at this support level would be an opportunity to buy.
For now, I see no opportunities to buy, but we could see one soon. For now, let’s wait for it to get back to the 21 ema, then we’ll see how to proceed. Either way, I do daily analysis on the index, so just remember to follow me to keep in touch with my future analyses!
