SPX: Could it CRASH next week? Pay attention to these KEY POINTS

2022年3月25日

Hello traders and investors! Let’s see how the SPX is doing today! It did exactly what we were expecting yesterday, and it filled our gap at 4,505. Now, let’s see what’s next.

First, in the 1h chart, we see a clear bull trend as it is doing higher highs/lows. We dropped just to fill the gap at 4,461, near the 21 ema, and now we are resuming the bullish movement. As long as the index stays above the 4,461, the trend will remain bullish in the short-term.



The index is very bullish in the daily chart as well, and we don’t see any bearish reversal pattern that could indicate a possible top. However, it is a fact that the volume is dropping, and this makes the index more vulnerable to corrections.

It wouldn’t be a surprise at all if it corrects to the 21 ema again, and the bullish bias would still be intact. Pullbacks to the 21 ema are normal and necessary movements. The next technical target in the daily chart is the 4,595 (previous resistance), and even if it corrects next week, this thesis won’t be changed. Remember, there's a difference between pullbacks and reversal signs.

In fact, if the index does any bullish pattern near the 21 ema or any other support, it might be an opportunity to buy/add positions.

I would only change this thesis if we see a clear reversal sign, and we are far from having one right now. However we must keep an eye on the key points mentioned in this analysis. Either way, I’ll keep you guys updated every day on this, so remember to follow me to keep in touch with my future analyses!