Hello traders and investors! The index is behaving exactly as we expected, despite the volatility after CPI. Even during stressful scenarios, technical analysis works amazingly well.
The index dropped this morning, only to bounce back up at the 21 ema in the 1h chart, and to fill the last gap at 4,531.32 (dashed line), exactly as we said it would on our study yesterday (the link to my previous analysis is below this post). This was a very good reaction, which reinforces the bullish bias seen in the short-term.
Although we see no reason to believe it’ll turn bearish, the index must break the previous top level at 4,583 in order to resume the bullish bias in the mid-term as well, or the market may see this as a possible Double Top.
Despite the flash-crash today, thanks to CPI, the index just hit its 21 ema in the daily chart, and now it is recovering from here. We see that the dashed line (which represents the gap in the 1h chart) is very close to the 21 ema in the daily chart. This point seems to be a very strong support level for the index, and only if it loses it we can start wondering about a sharper correction.
For now, the situation seems under control, and there’s nothing surprising around. If the S&P breaks the 4,600 area it’ll trigger a bullish pivot point in the daily chart, and this will be another very positive sign.
I’ll keep you guys updated on a daily basis, so, remember to follow me to keep in touch.
All the best.
The index dropped this morning, only to bounce back up at the 21 ema in the 1h chart, and to fill the last gap at 4,531.32 (dashed line), exactly as we said it would on our study yesterday (the link to my previous analysis is below this post). This was a very good reaction, which reinforces the bullish bias seen in the short-term.
Although we see no reason to believe it’ll turn bearish, the index must break the previous top level at 4,583 in order to resume the bullish bias in the mid-term as well, or the market may see this as a possible Double Top.
Despite the flash-crash today, thanks to CPI, the index just hit its 21 ema in the daily chart, and now it is recovering from here. We see that the dashed line (which represents the gap in the 1h chart) is very close to the 21 ema in the daily chart. This point seems to be a very strong support level for the index, and only if it loses it we can start wondering about a sharper correction.
For now, the situation seems under control, and there’s nothing surprising around. If the S&P breaks the 4,600 area it’ll trigger a bullish pivot point in the daily chart, and this will be another very positive sign.
I’ll keep you guys updated on a daily basis, so, remember to follow me to keep in touch.
All the best.
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