SPX: What to expect next?

Hello traders and investors! Will SPX resume its bull trend? Let’s see about it.

First, the trend is bullish in the short-term, and as long SPX keeps above the 21 ema and the purple trendline, it will remain bullish. Only if it loses one of these 2 points, we will see the trend getting weaker.

Also, keep in mind the black line around 3424, which is an important resistance, as it is the same point SPX did a top recently, after it filled the blue gap. If this black line will be defeated, the next targets are the green lines.

If the purple trendline will be lost, along with the 21 ema, the next target would be the red line, and the yellow gap down there would help to drag the index down.

Either way, the recent movement could be seen as an Ascending Triangle chart pattern.

Now, let’s see the daily chart:


While the short-term is still bullish, the daily chart is not so much. SPX is still struggling a lot to defeat the 21 ema, which is flat.

If the hourly chart turns bearish by losing the points mentioned above, the daily chart suggests that a sharper pullback is possible, because SPX can trigger a pivot point (yellow line), and its target would be at least the 3280 (red line).

These are the most important points for SPX right now, and if you liked this analysis, please, support it! And you are invited to follow me to keep in touch with my daily analysis. I’m sure you’ll find something interesting around here.

Stay safe.