Hello traders and investors! Let’s see how the SPX is doing today!
Yes, we have a systemic crash in the US, but we’ve seen worse. This crash seems to be related to US tech stocks and China only, as European markets are still quite resilient, especially FTSE (UK) and DAX (GER), which are leaving huge shadows under today’s candlesticks.
As we discussed in my recent video, the SPX has no reversal signs, and even now, we lack bearish structure. We must see lower highs/lows in the 1h chart before assuming we’ll correct more.
We have a support at the gap (black line, 4,369), and the index is seeking this point, for now. Remember: A crash is just a pullback, and it doesn't mean we are in a bear trend.
However, I agree that the daily chart looks bearish already.
The market might understand today’s movement as a false breakout from the previous top level, and we are heading to the next support at the 21 ema. If the crash is strong enough, we can retest the support around the 4,289 again.
I find it hard to believe we would retest the purple trendline in the daily chart without a stronger bearish structure in the 1h chart. We can hit there, but we must see a clear reversal in smaller time-frames.
Only time will tell if this is just a crash or the beginning of a bearish reversal. If it is a crash, then fine, it’ll be just an opportunity to buy, like it has been since April 2020. If it is the beginning of a reversal, then we must wait for more patterns to confirm our theory.
If you liked this analysis, remember to follow me to keep in touch with my daily updates, and support this idea if it helped you!
Thank you very much!
Yes, we have a systemic crash in the US, but we’ve seen worse. This crash seems to be related to US tech stocks and China only, as European markets are still quite resilient, especially FTSE (UK) and DAX (GER), which are leaving huge shadows under today’s candlesticks.
As we discussed in my recent video, the SPX has no reversal signs, and even now, we lack bearish structure. We must see lower highs/lows in the 1h chart before assuming we’ll correct more.
We have a support at the gap (black line, 4,369), and the index is seeking this point, for now. Remember: A crash is just a pullback, and it doesn't mean we are in a bear trend.
However, I agree that the daily chart looks bearish already.
The market might understand today’s movement as a false breakout from the previous top level, and we are heading to the next support at the 21 ema. If the crash is strong enough, we can retest the support around the 4,289 again.
I find it hard to believe we would retest the purple trendline in the daily chart without a stronger bearish structure in the 1h chart. We can hit there, but we must see a clear reversal in smaller time-frames.
Only time will tell if this is just a crash or the beginning of a bearish reversal. If it is a crash, then fine, it’ll be just an opportunity to buy, like it has been since April 2020. If it is the beginning of a reversal, then we must wait for more patterns to confirm our theory.
If you liked this analysis, remember to follow me to keep in touch with my daily updates, and support this idea if it helped you!
Thank you very much!
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💲💲 Project 5%: + 104%
🔹 S&P500: +35%
💪 Public track record.
