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Nathan_Black
Oct 23, 2020 7:24 PM

SPX: Weekly outlook and Multi Time Frame Analysis. 

S&P 500SP

Description

Hello traders and investors! Let’s see what’s new on SPX, and since it is Friday, let's do a complete MTFA by studing all our main time frames (H,D and W).

First, the hourly chart is inside a Descending Channel, and now it is struggling a lot to defeat its resistance at the upper purple line. Also, it has a clear pivot point at 3,466, and if triggered SPX would finally escape from this bearish trend in the short-term, and it would seek further resistances.

Meanwhile, it seems the price formed a bottom area near this blue line at 3,425, which is a support level better seen in the daily chart:



Yes, the blue line is quite important, as it worked as support and resistance alike several times since September. Only if SPX loses this support it would engage in a stronger bearish momentum, and in this case, there are no supports left other than 3,323 to hold the price.

On the other hand, the weekly chart is quite suggestive as well:



We have an idea of a double top here, and a retest of the 21 ema or the purple line would be expected. Last week’s candlestick could be a Spinning Top, but the pattern wasn’t triggered, meaning it didn’t close under 3,440 this week.

So far, we have no clear bearish reaction, and SPX is resisting quite well. It did a pullback after a bullish movement, and now the bulls are buying near a support level. Who’s going to win this battle? Only time will tell, but the points mentioned in this analysis will offer you some clues about what’s next.

And if you like this analysis, please, support it! And follow me to keep in touch with my daily analyses!

Have a great weekend.
Comments
ProjectSyndicate
detailed analysis on SPX and fresh insights, great content.
I also lean toward bullish outlook after US Election.
Also it's possible that technical setup is transitioning
into bullish C*H right now. find out shortly!
Nathan_Black
@ProjectSyndicate, Yep, let's see how it'll react during the elections. Either way, it seems the market has priced it, and we can only expect volatility!
Butler_ee
Good job
Nathan_Black
@Butler_ee, Thank you!
space_banditos26
Solid work (as always) Nathan!
Do you feel todays action confirmed the double top? It appears the 50ema held up the price and acted as solid support for now.
Nathan_Black
@space_banditos26, It could be, yes, since we are losing the previous support. If we see no reaction, SPX will just seek lower supports.

Thanks for the support, Bandito! Always a pleasure to see you around.

Stay safe, man!
PeanutsMolloy
Fantastic analysis @Nathan_Black
Much appreciated.
Nathan_Black
@PeanutsMolloy, I'm glad you liked Peanuts! Nice to see you around.
milty-friedman-3
nice one m8
Nathan_Black
@milty-friedman-3, Thanks Milty! I appreciate the support!
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