Hello traders and investors! Let’s see how the SPX is doing today!
We have a new record high today, which is incredible. This bullish momentum was triggered when the index did this classic Piercing Line pattern near a support level (purple line), which we discussed about my last analysis (Jan 4, link below as usual).
Yesterday’s drop was quite unusual, but in the end, was just a pullback to the 21 ema, rather than an actual sell-off. Now the key point is the 3783, as if the index loses it, we may see a sharper pullback, but still, wouldn’t be anything too drastic, as the trend is incredibly strong here.
Now, the daily chart:
The volume is increasing, which is another good sign, and we are quite far from the 21 ema. Again, if the index loses the 3783 a pullback to the 21 ema/green line at 3726 would be natural.
So far, there are no pullback or reversal signs yet, and if SPX keeps above its supports, the bull trend will persist, until a clear reversal occurs, like Charles Dow would say (Dow Theory 6th tenet).
If you liked this analysis, remember to follow me to keep in touch with my daily studies. And support this idea if it helped you!
Thank you very much.
We have a new record high today, which is incredible. This bullish momentum was triggered when the index did this classic Piercing Line pattern near a support level (purple line), which we discussed about my last analysis (Jan 4, link below as usual).
Yesterday’s drop was quite unusual, but in the end, was just a pullback to the 21 ema, rather than an actual sell-off. Now the key point is the 3783, as if the index loses it, we may see a sharper pullback, but still, wouldn’t be anything too drastic, as the trend is incredibly strong here.
Now, the daily chart:
The volume is increasing, which is another good sign, and we are quite far from the 21 ema. Again, if the index loses the 3783 a pullback to the 21 ema/green line at 3726 would be natural.
So far, there are no pullback or reversal signs yet, and if SPX keeps above its supports, the bull trend will persist, until a clear reversal occurs, like Charles Dow would say (Dow Theory 6th tenet).
If you liked this analysis, remember to follow me to keep in touch with my daily studies. And support this idea if it helped you!
Thank you very much.
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