SPX long term tendecy is still a bull one, so we shall seek only positions in the bought direction.
In this last week we have seen the price of the SPX fall down to the 23.60% , around 2840 pts, which was clearly a very good point to buy more S&P500 ETFs to add to your stock position: the price had returned to the MME200, to the 23.60% , a support, and lastly we had the oversold, very good signals here.
Now we see the price going up indicating that the bull movement has resumed after it has touched the supports at 2840. The histogram indicates a weakening of the momentum from last week's bear movement. The gives us no objection to a possible continuation of the bull movement.
I believe that this bull movement shall continue till it hits the first resistance around 3000 pts. If it surpasses this first resistance, then it shall proceed to next one, in the projection of the upper channel band of the around 3140 pts.
Important price levels:
In case the price continues to go up, it shall suffer some resistance around the regions bellow:
- 3000 pts
- 3140 pts
- 3210 pts
In case the price reverts, it shall hold around the followind regios:
- 2840 pts
- 2745 pts
- 2665 pts
Please, give your thoughts about the analysis in the comment section!