Hello traders and investors! Let’s see how the SPX is doing today!
The index is doing amazingly well, and we see a clear continuation of the bull trend, as it can’t do any bearish structure. It didn’t trigger any pullback sign, and we are heading to the ATH.
Now that we are close to the resistance at the ATH, we could see a pullback, but again, we don’t see any confirmation of a pullback yet. In fact, it has been more than a week now that the index didn’t even touch the 21 ema in the 1h chart, and this tells us that it is extremely bullish.
If it drops to its 21 ema, I would consider it just a harmless pullback. However, I agree that we could drop more, considering the daily chart:
If it confirms a Shooting Star candlestick pattern, we could drop to our support levels again. The first support is at 4,465, and if it doesn’t hold the index, the 21 ema is another good support candidate. We are quite far from it, but a pullback wouldn’t ruin the mid/long-term bullish bias.
To be honest, I think we could use a pullback here. Let’s see how it’ll play in the next days, and if you liked this analysis, remember to follow me to keep in touch with my daily updates on stocks and indices.
@Paresh_Sagar, Yes, we could. Maybe we'll see one soon :)
ItsThePipsPeeps
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Nice analysis Nathan. I'm looking for a harder test of the 4546 level before a downward drop to 4460 range. Let's watch what happens.
CowabungaDad
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@brianmeaney, Hoping for that too!
Paresh_Sagar
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@brianmeaney, looking at the same levels as well. May extend to 4440 to cover the gap. These would also be 38.2% and 50% Fib levels for the runup from 13th Oct.
Nathan_Black
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@brianmeaney, I think that's a wise strategy! I wish all the best to you, Brian! Thank you!
ItsThePipsPeeps
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some indecision with the last candle.... "should I stay or should I go now". Monday, maybe we will learn on Monday whether it continues bullish or turns tail and drop 100 pips.