Nathan_Black

SPX: About to do something interesting!

SP:SPX   S&P 500 Index
Hello traders and investors! As usual, let’s see how the SPX is doing today!

I overestimated the bears, as I was expecting that the index would fill the gap at 4,444 yesterday. We still could fill this gap, as today the index did a rally to the 21 ema , just to do another bearish reaction, making it a possible Dead Cat Bounce.

However, if the index reacts and closes above the 21 ema , we might see a reversal pattern, possibly a bullish pivot point. Aside from the support at the gap, now seems to be an important place for the index to form a bottom in the daily chart:


Since we are just above an important support line, any bullish reaction around here would be an excuse to buy. We just need to wait for confirmation.

The volume seems ok, but it is harder to read than SPY’s volume , which clearly spikes when we get near the support line:


Surely, something interesting is about to happen. Let’s pay attention to the signs it’ll give us this week. If you liked this analysis, remember to follow me to keep in touch with my daily updates, and support this idea if it helped you!

Have a good day.
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Comments

For the moment I don't think it has any real reason for a major drop. Always drops just before Fed talks.
Definitely end of month going into Aug Id take a drop more seriously.

Great info thanks for sharing. One of few I pay attention to.

Thanks Nathan.
+3 Reply
AF_D dipNrip90210
@dipNrip90210 you’re a month off there
Reply
Nathan_Black dipNrip90210
@dipNrip90210, Thanks a lot, dipNrip! I couldn't agree more. As long as there are no reversal signs, the smartest thing to do is just follow the trend.

Have a good day!
+1 Reply
Nailed it yet again @Nathan_Black
Spot on reading of the price action.
Thank you.
Reply
Nathan_Black PeanutsMolloy
@PeanutsMolloy, Thanks, Peanuts! Let's just be aware of the volatility, probably the market will be wild today/tomorrow. Tomorrow is Quadruple Witching day!

Best of luck to you.
+1 Reply
Something interesting always happens around quad witching dates, hopefully on the upside this time as I sold my puts on that support
Reply
@kvsrinie, Yep, you are right! I wish the best of luck to you!

Take care!
+1 Reply
Good job!
Reply
Nathan_Black PuckBunny
@PuckBunny, Thanks, PuckBunny!

Have a good day!
Reply
Thanks for the update.
Reply