SPX: Reaching Important Support Lines.• SPX lost a support line at 4,113, and it seems it wants to engage a bearish momentum;
• The bias was already slightly bearish, as the index has been doing lower highs (purple line). But now, it is losing a key support line, indicating that it wants to seek lower levels, at least in the short-term.
• In the daily chart, the index is about to hit its 21 ema, which is a technical support level and our target since our previous analysis (link below this post);
• Unlike the 1h chart, the daily chart is still very bullish, as the index is still doing higher highs/lows, and it is above the 21 ema;
• This suggests that the index is supposed to hit the next resistance at 4,195, but it is important to do a bullish reaction as soon as possible above its 21 ema to confirm a bottom signal - so far, no bottom signal yet;
• If the SPX loses its 21 ema, then it might seek the next support line at 4,078, a multi-support/resistance line. Only by losing the 4,078 the index would frustrate the bullish bias.
I’ll keep you updated on this. Remember to follow me to keep in touch with my daily analysis.
