Hello traders and investors! Let’s see how the SPX is doing today! It’s been a while since I did a public analysis about it, so we have a lot to update.
First, in the 1h chart, we have a short-term congestion, between the purple line and the red line, which was previously a resistance zone, now support, following the Principle of Polarity.
It seems the 21 ema is also another support, and it is now squeezing the index against the purple line, creating what it is called a Trap Zone. At one point, it’ll explode, we just don’t know which direction yet. Either way, we can work with scenarios, and the daily chart will be helpful now:
If the index loses the support levels previously mentioned, it'll probably hit the yellow rectangle zone, around the 21 ema and the orange line area (4,119). This could be a buy zone, if we see the right reaction.
But what if the SPX escapes from the Trap Zone in the 1h chart upwards? Then it’ll just resume its bull trend, as it has been doing since last year.
So far, all I can say is that it is not good to buy near resistances, but we don’t have any sell signs either. Let’s just be careful, and wait for more signs.
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Very helpful and much appreciated, as always.