On the Daily TF, Price Action on SPX is holding a strong uptrend on within a large ascending channel (bearish pattern). The current daily candle is an indecision candle which is being printed at the resistance area of the channel, accompanied by a Larkuidity Sweep signal via the Jeanius Algo.
Note: There is an imbalance between 5088.79 and 5038.70. There is also a large candle gap between 5038.83 and 4983.21.
Lower TF support is at the 5087.24 and 5094.60 zone. If you MUST day trade, watch price at this lower TF support zone for bounces. Ideally you want to fade the highs and lows of the ranged candle by selling above the high of the previous day and buying below the low of the previous day candle. (The daily range levels are 5081.46 high and 5111.06 low)
My actual trading plan is to watch for bearishness and sell below the current daily candle into the imbalance and GAP area. BUT I would need a bearish daily candle close below 5111.06
Additional Confluences:
On the weekly chart, volume divergence shows a slowing in buyers meaning as bullish candles pushed to the upside, volume as been declining with the previous bullish engulfing weekly candle is accompanied with the lowest volume of the last 4 weekly candles signaling a possible pullback.
Price rejecting highs of Bolly Bands
Overbought and overextended to the upside on the RSI, MACD, and STOCH. (Sideways movement at these levels means trend is holding strongly. Need signal lines to curl back down into oscillating range).
Price has arrived to the 161.80% FIB extension level using overall daily TF price action. (A profit taking level)
FYI: On the Jeanius Algo Screener, there are also bearish signals on META, AAPL, XLK, XLB, XLRE, and XLY. This information is good because It gives insight on bearish setups on key sectors and the mag 7. Bearishness on these tickers in Alignment with my SPX analysis just adds to my confidence. (edited)
Note: There is an imbalance between 5088.79 and 5038.70. There is also a large candle gap between 5038.83 and 4983.21.
Lower TF support is at the 5087.24 and 5094.60 zone. If you MUST day trade, watch price at this lower TF support zone for bounces. Ideally you want to fade the highs and lows of the ranged candle by selling above the high of the previous day and buying below the low of the previous day candle. (The daily range levels are 5081.46 high and 5111.06 low)
My actual trading plan is to watch for bearishness and sell below the current daily candle into the imbalance and GAP area. BUT I would need a bearish daily candle close below 5111.06
Additional Confluences:
On the weekly chart, volume divergence shows a slowing in buyers meaning as bullish candles pushed to the upside, volume as been declining with the previous bullish engulfing weekly candle is accompanied with the lowest volume of the last 4 weekly candles signaling a possible pullback.
Price rejecting highs of Bolly Bands
Overbought and overextended to the upside on the RSI, MACD, and STOCH. (Sideways movement at these levels means trend is holding strongly. Need signal lines to curl back down into oscillating range).
Price has arrived to the 161.80% FIB extension level using overall daily TF price action. (A profit taking level)
FYI: On the Jeanius Algo Screener, there are also bearish signals on META, AAPL, XLK, XLB, XLRE, and XLY. This information is good because It gives insight on bearish setups on key sectors and the mag 7. Bearishness on these tickers in Alignment with my SPX analysis just adds to my confidence. (edited)
Dennis Butler Jr.