Hello traders and investors! Let’s see how the SPX is doing today!
First, it crashed a lot yesterday, losing the 21 ema, frustrating any possible bullish reaction. Right now, we don’t see any reversal sign, and there’s nothing indicating that the index could recover from here. However, it is not all bad.
If the SPX keeps dropping, we have a support at 3,858, but I’m not sure if it’ll get there, as it seems it is reacting already. Only if the index loses this support we would see a continuation of this bear trend.
On the other hand, it is under its 21 ema and under the 3,979 (previous support level). As long as it stays under this price level, we can’t say the index could recover. If we see a clear bullish reversal structure around, in my view, we could break the 21 ema and bounce up to the 4,100, filling at least the two last gaps. Again, there’s nothing indicating this could help.
To me, we are in a neutral zone, and there’s nothing interesting going on here.
In the daily chart, we see that the index is still in a clear bear trend, near its support level, far from the 21 ema, and the volume is very low.
This reinforces our idea that we are in a neutral zone, and nothing interesting will happen until it breaks either its support or resistance levels mentioned when we studied the 1h chart.
I’ll keep you guys updated on this, so remember to follow me to keep in touch with my future analyses!