Hello traders and investors! Let’s see how the SPX is doing today! Last Friday reacted nicely by the end of the day, so we have to update our thoughts.
In the 1h chart we see that the index almost hit our target at 4,500 (we missed by 6 points). In addition, we see a classic Bullish Sandwich candlestick pattern, a pattern named by me, because we see a bearish candlestick between two bullish candles, which reminds me of a sandwich. This looks ridiculous (and it is), but it is a powerful pattern, and soon you’ll understand why. The important thing is the psychological meaning of this - and why this is a bullish structure.
First, this bullish reaction occurred near our support level, and this means the bear trend is starting to get exhausted. Second, if you analyze smaller time-frames, you’ll realize that a Sandwich pattern is just a bullish pivot point, a bullish structure that creates bull trends, and this is why it is such a powerful pattern. Look at the 15 min chart:
The index dropped to hit its 61.8% Fibonacci’s Retracement, and it did a powerful reaction, breaking the previous top at 4,542 (black line), doing a higher high/low, reversing the trend for good by triggering a pivot point. What’s more, you could even say that it did an Inverted H&S chart pattern, and you would be right. Either way, we had many bullish reversal signs.
Now the index is bullish again, and as I mentioned in my last analysis, pullbacks would be just opportunities to buy.
In the daily chart, it feels we should’ve corrected more, at least to the 21 ema, and there’s still a chance of a sharper correction, but only if we lose Friday’s low from here, otherwise, we can’t take this possibility seriously. So far, our Sandwich is working nicely, but the index has a few challenges to overcome in the next few days.
To consolidate the bullish momentum, it’ll be important to stay above the previous resistance at 4,597. Our next gap to fill is at 4,652. I’ll keep you guys updated on this every day, so remember to follow me to keep in touch with my daily analyses!
In the 1h chart we see that the index almost hit our target at 4,500 (we missed by 6 points). In addition, we see a classic Bullish Sandwich candlestick pattern, a pattern named by me, because we see a bearish candlestick between two bullish candles, which reminds me of a sandwich. This looks ridiculous (and it is), but it is a powerful pattern, and soon you’ll understand why. The important thing is the psychological meaning of this - and why this is a bullish structure.
First, this bullish reaction occurred near our support level, and this means the bear trend is starting to get exhausted. Second, if you analyze smaller time-frames, you’ll realize that a Sandwich pattern is just a bullish pivot point, a bullish structure that creates bull trends, and this is why it is such a powerful pattern. Look at the 15 min chart:
The index dropped to hit its 61.8% Fibonacci’s Retracement, and it did a powerful reaction, breaking the previous top at 4,542 (black line), doing a higher high/low, reversing the trend for good by triggering a pivot point. What’s more, you could even say that it did an Inverted H&S chart pattern, and you would be right. Either way, we had many bullish reversal signs.
Now the index is bullish again, and as I mentioned in my last analysis, pullbacks would be just opportunities to buy.
In the daily chart, it feels we should’ve corrected more, at least to the 21 ema, and there’s still a chance of a sharper correction, but only if we lose Friday’s low from here, otherwise, we can’t take this possibility seriously. So far, our Sandwich is working nicely, but the index has a few challenges to overcome in the next few days.
To consolidate the bullish momentum, it’ll be important to stay above the previous resistance at 4,597. Our next gap to fill is at 4,652. I’ll keep you guys updated on this every day, so remember to follow me to keep in touch with my daily analyses!
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👉 Join the 5%: thefinancehydra.com/
💲💲 Project 5%: + 104%
🔹 S&P500: +35%
💪 Public track record.
