Hello traders and investors! Let’s see how the SPX is doing today!
First, in the 1h chart, we see a correction to the 21 ema, and the price is trying to react, as we expected (link to yesterday's analysis is below this post). This is good, and this correction doesn’t invalidate the bull trend, as the index is still doing higher highs/lows.
There isn’t any bearish structure around, but if the index loses the support at the 21 ema, the gap (blue area) could be our next stop. In the worst-case scenario, it would drop all the way down to the 4,500 (pink line), and this would ruin the bullish bias in the 1h chart, but not in the daily chart:
In the daily chart, the rally was intense, and now we are above the 4,595 (red line), indicating that the index is still looking strong. The fact that it couldn’t close under this line is another sign of strength.
If the SPX loses this red line, along with the 21 ema in the 1h chart, filling the blue gap we mentioned, then we might consider a sharper pullback. If this happens, I see the index back to the 21 ema in the daily chart again (now at 4,463 and rising).
For now, we don’t see a single bearish reversal pattern around, but since the index went up too much since Mar 15, it is important to be prepared for corrections. As long as we don't see a bearish structure, all we can do is assume the index will keep trending.
As usual, I’ll keep you guys updated on this, so, remember to follow me to not miss any of my daily analyses.
First, in the 1h chart, we see a correction to the 21 ema, and the price is trying to react, as we expected (link to yesterday's analysis is below this post). This is good, and this correction doesn’t invalidate the bull trend, as the index is still doing higher highs/lows.
There isn’t any bearish structure around, but if the index loses the support at the 21 ema, the gap (blue area) could be our next stop. In the worst-case scenario, it would drop all the way down to the 4,500 (pink line), and this would ruin the bullish bias in the 1h chart, but not in the daily chart:
In the daily chart, the rally was intense, and now we are above the 4,595 (red line), indicating that the index is still looking strong. The fact that it couldn’t close under this line is another sign of strength.
If the SPX loses this red line, along with the 21 ema in the 1h chart, filling the blue gap we mentioned, then we might consider a sharper pullback. If this happens, I see the index back to the 21 ema in the daily chart again (now at 4,463 and rising).
For now, we don’t see a single bearish reversal pattern around, but since the index went up too much since Mar 15, it is important to be prepared for corrections. As long as we don't see a bearish structure, all we can do is assume the index will keep trending.
As usual, I’ll keep you guys updated on this, so, remember to follow me to not miss any of my daily analyses.
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