SPX: Another RECORD HIGH! But, what if it starts dropping?
Hello traders and investors! Let’s see how the SPX is doing today!
The index is going up nicely, but the candlestick in the daily chart looks enigmatic, as it is almost a Doji. The long shadow above the daily candlestick is annoying for sure, and kind of ruins the bullish momentum.
Since October 13, it seems the index deserves a pullback to the 21 ema again, at least, but we don’t see any meaningful weakness sign. Even if it closes doing a Doji, a Shooting Star, or a possible Spinning Top candlestick pattern, we be aware of the fact that the trend is clearly bullish in the 1h chart too:
As long as we don’t see any bearish confirmation here, and a sequence of lower highs/lows, the index won’t reverse in the daily chart. The 21 ema is pointing up, and it is working as a nice support as well.
This makes me wonder if a bearish candlestick pattern in the daily would be another bear trap – just a pullback to the 21 ema in the 1h chart. That’s why I prefer to use the 1h chart as a main guide for now. If it drops, ok, we have many support levels to work with, and probably the 21 ema in the daily chart will be our best indicator for now.
As some of you have been pointing out, a pullback would be great, and many other stocks would probably give us buy signs. Now I think it is the time to just hold some positions, instead of buying like crazy, and wait for more signs on the index.
If you liked this analysis, remember to follow me to keep in touch with my daily updates on stocks and indices. What’s more, support this idea if you liked it!
Have a good day.
The index is going up nicely, but the candlestick in the daily chart looks enigmatic, as it is almost a Doji. The long shadow above the daily candlestick is annoying for sure, and kind of ruins the bullish momentum.
Since October 13, it seems the index deserves a pullback to the 21 ema again, at least, but we don’t see any meaningful weakness sign. Even if it closes doing a Doji, a Shooting Star, or a possible Spinning Top candlestick pattern, we be aware of the fact that the trend is clearly bullish in the 1h chart too:
As long as we don’t see any bearish confirmation here, and a sequence of lower highs/lows, the index won’t reverse in the daily chart. The 21 ema is pointing up, and it is working as a nice support as well.
This makes me wonder if a bearish candlestick pattern in the daily would be another bear trap – just a pullback to the 21 ema in the 1h chart. That’s why I prefer to use the 1h chart as a main guide for now. If it drops, ok, we have many support levels to work with, and probably the 21 ema in the daily chart will be our best indicator for now.
As some of you have been pointing out, a pullback would be great, and many other stocks would probably give us buy signs. Now I think it is the time to just hold some positions, instead of buying like crazy, and wait for more signs on the index.
If you liked this analysis, remember to follow me to keep in touch with my daily updates on stocks and indices. What’s more, support this idea if you liked it!
Have a good day.
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