Stop playing with me SPX. So far this week, we've seen a slowwww drift up. Ok, Monday and Tuesday did put in some solid bars, but now here we are, babying this 6,000 psychological area.
Below is my write up from Sunday. While I always state different scenarios, I've been leaning bullish...though some of my individual stock plays have retested my stop levels this week. (They have been a bit more sideways)
SPX (written Sunday 06/01/25)
Still above key weekly MAs, trend remains intact
The weekly chart still shows an uptrend. We're above the 10EMA, 20EMA, and 50SMA, and those moving averages are turning up. So while the pace of the uptrend has slowed, the broader structure hasn't broken down. This past week was a digestion of the recent April and early May run, and so far, not an unraveling of it.
Friday's dip was likely just a shakeout.
Friday gave us a candle that flushed below the daily 20EMA then quickly reversed. That kind of action often traps early shorts and clears out weaker long hands…a classic shakeout. If this theory holds, we should see strength early next week. But if we break below the 5750-5725 area, that thesis gets invalidated. At that point, I'd treat the move as something more structurally weak, not just a pullback.
Confluence zone still holding for now
We're sitting right on a layered area of support above all moving averages, and a horizontal support and resistance level from earlier this year. So far, it has held. If it continues to hold, it gives the index a platform to try the upside again.
Trendlines matter, but not more than the overall structure
I was asked about trendlines this week, and it was a good reminder to step back and recognize how I was sharing my use of them. Trendlines are helpful, but they’re just one part of the picture. Same goes for moving averages, volume, and other tools. They only hold weight relative to the context. In a choppy, indecisive market, over-focusing on any single signal can do more harm than good. I'm aiming to keep my analysis well-rounded, zoomed out, and centered on structure.
What would confirm the upside?
A clean move back above 6,000 and a push through the February all-time high would help strengthen the case for continued upside. Not just because it’s a technical level, but because it’s psychological too. If we’re breaking out into new highs, especially after the chop and hesitation of the last few weeks, that’s when retail traders tend to feel like we’re “in the clear.” That can bring in more participation, more confidence, and more momentum. Ideally, we’d see a higher low hold on any dips, and then a strong push through 6,000 with follow-through, not just a quick tag and pullback. That kind of behavior would tell me buyers are stepping in with conviction again.
What would shift the bias more bearish?
A breakdown and hold below 5725 (not just a quick flush) would suggest deeper downside potential. From there, 5600 (around the daily 50SMA) becomes the next level I’d watch for support. But so far, I’m not leaning toward this as the main scenario.
What do you all see? Will we break 6,000 and get an increase in momentum?
Below is my write up from Sunday. While I always state different scenarios, I've been leaning bullish...though some of my individual stock plays have retested my stop levels this week. (They have been a bit more sideways)
SPX (written Sunday 06/01/25)
Still above key weekly MAs, trend remains intact
The weekly chart still shows an uptrend. We're above the 10EMA, 20EMA, and 50SMA, and those moving averages are turning up. So while the pace of the uptrend has slowed, the broader structure hasn't broken down. This past week was a digestion of the recent April and early May run, and so far, not an unraveling of it.
Friday's dip was likely just a shakeout.
Friday gave us a candle that flushed below the daily 20EMA then quickly reversed. That kind of action often traps early shorts and clears out weaker long hands…a classic shakeout. If this theory holds, we should see strength early next week. But if we break below the 5750-5725 area, that thesis gets invalidated. At that point, I'd treat the move as something more structurally weak, not just a pullback.
Confluence zone still holding for now
We're sitting right on a layered area of support above all moving averages, and a horizontal support and resistance level from earlier this year. So far, it has held. If it continues to hold, it gives the index a platform to try the upside again.
Trendlines matter, but not more than the overall structure
I was asked about trendlines this week, and it was a good reminder to step back and recognize how I was sharing my use of them. Trendlines are helpful, but they’re just one part of the picture. Same goes for moving averages, volume, and other tools. They only hold weight relative to the context. In a choppy, indecisive market, over-focusing on any single signal can do more harm than good. I'm aiming to keep my analysis well-rounded, zoomed out, and centered on structure.
What would confirm the upside?
A clean move back above 6,000 and a push through the February all-time high would help strengthen the case for continued upside. Not just because it’s a technical level, but because it’s psychological too. If we’re breaking out into new highs, especially after the chop and hesitation of the last few weeks, that’s when retail traders tend to feel like we’re “in the clear.” That can bring in more participation, more confidence, and more momentum. Ideally, we’d see a higher low hold on any dips, and then a strong push through 6,000 with follow-through, not just a quick tag and pullback. That kind of behavior would tell me buyers are stepping in with conviction again.
What would shift the bias more bearish?
A breakdown and hold below 5725 (not just a quick flush) would suggest deeper downside potential. From there, 5600 (around the daily 50SMA) becomes the next level I’d watch for support. But so far, I’m not leaning toward this as the main scenario.
What do you all see? Will we break 6,000 and get an increase in momentum?
註釋
Wow y'all. WHAT A FLIP FLOP. I saw the sentiment change through the price action around 1ish? Not too sure I've been doing a few things outside of the house. Then HAD to close my calls bc they hit my stops, some for less profit, some at a loss. Today felt more like a sell off than just a single red day. But we will need to see the follow through. Each day will give us more information. Are we in for another ride down? That would be wild.
Anyways, manage your risk, update later!
註釋
Another turn of events? I cannot keep up! Anyone else having trouble trading this period? The last four weeks have been tough for me. I was sharing earlier that it's not the losses that bother me, we get used to those as traders, but the flips intra day where I think: wait maybe we aren't going higher, maybe we are topping for the moment. and then it's like no no you were right...and then mmm maybe not..It's like whiplash. Anyways hope you all are doing better than me!We are almost clear from the morning madness, let's see if we maintain. Nice to see SPX over 6,000 I had a few entries line up, pretty much the ones I closed yesterday. (I have been working on tighter stops for new entries, so it was good to get feedback that maybe I need to add a little more room to my initial stop).
If you're reading this, leave a comment :)
XOXO
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