Hello traders and investors! Let’s see how the SPX is doing today!
We see a correction today, which is fine, but if it loses the 4,333 again, it could trigger a bearish pivot point, leading to a sharper drop, probably to one of its Fibonacci’s Retracements. A drop to the 61.8% retracement would be acceptable.
It is important to stress how important the 4,333 is. As evidenced by the red circles, this point was a previous support/resistance multiple times in the past, and if the index loses this point again, it won’t be a good thing. In addition, this point is very close to the 21 ema, making it a dual-support level.
However, if the index reacts near this dual-support area, the Breakaway Gap at 4,472 is an easy target.
To me, a correction is acceptable, but we have yet to retest the 21 ema in the daily chart, at least. Last week, we just hit a very strong support level in the daily chart, and the volume is increasing again.
In the daily chart, the trend is still bearish, and I would be more convinced of a mid-term reversal only if the index triggers the pivot point seen in the 1h chart, at 4,388. For now, let’s patiently wait for more signs.
I’ll keep you guys updated every day on this, so, remember to follow me to keep in touch with my daily analyses!
We see a correction today, which is fine, but if it loses the 4,333 again, it could trigger a bearish pivot point, leading to a sharper drop, probably to one of its Fibonacci’s Retracements. A drop to the 61.8% retracement would be acceptable.
It is important to stress how important the 4,333 is. As evidenced by the red circles, this point was a previous support/resistance multiple times in the past, and if the index loses this point again, it won’t be a good thing. In addition, this point is very close to the 21 ema, making it a dual-support level.
However, if the index reacts near this dual-support area, the Breakaway Gap at 4,472 is an easy target.
To me, a correction is acceptable, but we have yet to retest the 21 ema in the daily chart, at least. Last week, we just hit a very strong support level in the daily chart, and the volume is increasing again.
In the daily chart, the trend is still bearish, and I would be more convinced of a mid-term reversal only if the index triggers the pivot point seen in the 1h chart, at 4,388. For now, let’s patiently wait for more signs.
I’ll keep you guys updated every day on this, so, remember to follow me to keep in touch with my daily analyses!
🔴 Only 5% of traders manage to be profitable in the long term.
👉 Join the 5% Project: thefinancehydra.com/the5project/
👉 Join the 5% Project: thefinancehydra.com/the5project/
