SPX500, Setting Up For A Major Gap-Fill!

2020年7月12日

Hello, Traders Investors And Community, welcome to this analysis about the current situation with the important S%P 500 Index, what the current formation is telling, and what we can expect from the index the next hours and days. As I already mentioned in previous analysis the index was setting up for a gap fill on the 4-hour chart and on the smaller timeframes which has now fulfilled and as there did not enter increasing supply since the gap-fill till now there are some interesting signals I detected which can determine the further outcome of the index. Fundamentally the situation is still critical for the bull-market rally in the stock market where there is a big difference between the real economic growth and the stock market, where the real economy is still damaged by the crisis the stock-market is testing upside levels which need to change to an symmetrical environment where the real economy and stocks go together to provide a solid market.

As you can watch in my chart the index just moved above the major key-level which is marked in orange in my chart and is now consolidating above this level which is normally in the most occasions a continuation sign. Furthermore, we see the index still holding above the 55- and 400-EMA you can watch marked in green and black in my chart which is a more bullish than bearish environment when the index had been closed below these EMA-structure this fact would be the reverse as I pointed out in the analysis of the single stocks I published covering picked titles from the market. You can also watch this principal parallel channel in which the index is trading which when confirmed to the upside can lead to a bullish surge in price and set up to fill the gap we have at the 3333 levels which will also match with the price projection target of the parallel channel, taking these conditions in consideration it is a high possible confirmation that can develop.

Although this scenario is likely on the short-term-basis as we speak from the 4-hour chart here this does not mean the index is completely bullish as this can also be a huge bull-trap which is supported by the fact that mostly the smart-money is staying out of the market currently and the uptrend is not fundamentally backed, therefore, it has to be considered what the index will do after confirming the more likely gap-fill scenario and if it will advance further to test the all-time-high condition or show bearish pressure. The current rally is mostly monetarily driven as central banks pumping money into it the corona damaged economic situation has not changed yet, we will see if this can change within the course of the next hours, weeks and days but for now, the bearish scenario is not out of the desk, therefore, it should not be kept aside as there are many factors which can support a possible continuation of bearish pressure established this year.

In this manner, thank you for watching, support for more market insight, have a great day, and all the best to you!
Conviction is the search for ultimate meaning.

Information provided is only educational and should not be used to take action in the markets.

2023年9月12日

評論

ANALYSIS UPDATE: The S&P 500 completed the major gap-fill setup in the range to emerge with a massive breakout into the all-time high region.

Since the S&P 500 completed the major gap-fill setup it continued with important expansion volatilities.