SPX: Complete weekly study.

Hello traders and investors! Since it is Friday, let’s do a complete study on SPX, by doing a nice Multi Time Frame Analysis (MTFA). Therefore, I invite you to follow me if you are new around here. Every day, after the market closes, I’ll share a few thoughts here, and I’m sure you’ll find something you like!

The black line in the hourly chart is the ATH. Yes, we are VERY close to it, which is amazing! But we have a top lower than the previous top (see the red line), and this might indicate to us that the bull trend will get weaker.

Of course, there’s no confirmation yet, but this would be the first sign of a pullback (if there will be one). Right now, SPX is resisting at its support at its purple line (previous bottom), and only if it loses it, we will see some pullback.

Again, pullback is different than bear trend! Pullbacks are healthy and natural movements, and since we are in a bull trend, they offer us just opportunities to buy at a better price.

Let’s see the daily chart for a better perspective:


The trend is extremely bullish from here too. We filled the blue gap on the left, and we are going up almost without rest. Now that we are close to the ATH, maybe we will see a pullback, and the volume decreasing might be a sign for us (red arrow).

And this is normal, ok? According to the Dow Theory 5th tenet: The Volume Must Confirm the Trend. A pullback with low volume is a good indicator that the trend is just taking a rest before the next movement.

Also, the 21 ema is pointing up, and it would be a natural support for the price if a pullback occurs, as for the pink line at 3280. If you ask me, even a pullback to the blue line at 3196 would be ok, but the 3280 is a more reasonable target, especially if you look at the weekly chart:


Since we are way too far from the 21 ema, and the previous top around the purple line would be a natural support for the price, it is not crazy to think about it as an important support zone.

Of course, we are thinking about a possibility of a pullback, and these are the targets for this scenario. The trend is bullish, and the odds are that the ATH will be defeated in the mid-term.

But since nothing can go up forever without a rest, we can work with this scenario. And of course, support this idea if you liked it (which is probably the case, otherwise, why would you still be here?).

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