Hello traders and investors! Let’s see how the SPX is doing today!
First, it is doing exactly what we expected it would, as it corrected in the 1h chart. It just hit its 38.2% Fibonacci’s retracement, and it is reacting now. We talked about this yesterday, in my previous analysis, and the link to it is below this post.
This reinforces the reversal patterns it has been doing, and we have a new key point to watch: The 4,200 (red line). By breaking this point, the index will trigger a bullish structure (a higher high/low), and it’ll leave the 21 ema behind. This could bring the index again to the 4,299 (purple line), filling the previous gap (yellow square), and it'll be the confirmation sign we need.
The index must not lose the 38.2% retracement; otherwise, it might ruin the pattern.
In the daily chart, we already dropped too much, and the index triggered the Hammer candlestick pattern we talked about yesterday. What’s more, we just hit an important support level, so the timing couldn’t be better.
The volatility will surely increase in the short-term, but as long as it doesn’t lose the 4,062 the index won’t resume its bearish momentum. Given the technical signs I described in this analysis, I see the index retesting its 21 ema in the daily chart in the next few days. Then we’ll see if it is a Dead Cat Bounce or not.
Either way, the Risk/Reward ratio favors long trades, and I see movements like this as opportunities to buy. There are dozens of great stocks out there looking amazing. For now, let’s keep our eyes open at the key points mentioned in this post.
I’ll keep you guys updated every day, so just remember to follow me to keep in touch with my future analyses!
First, it is doing exactly what we expected it would, as it corrected in the 1h chart. It just hit its 38.2% Fibonacci’s retracement, and it is reacting now. We talked about this yesterday, in my previous analysis, and the link to it is below this post.
This reinforces the reversal patterns it has been doing, and we have a new key point to watch: The 4,200 (red line). By breaking this point, the index will trigger a bullish structure (a higher high/low), and it’ll leave the 21 ema behind. This could bring the index again to the 4,299 (purple line), filling the previous gap (yellow square), and it'll be the confirmation sign we need.
The index must not lose the 38.2% retracement; otherwise, it might ruin the pattern.
In the daily chart, we already dropped too much, and the index triggered the Hammer candlestick pattern we talked about yesterday. What’s more, we just hit an important support level, so the timing couldn’t be better.
The volatility will surely increase in the short-term, but as long as it doesn’t lose the 4,062 the index won’t resume its bearish momentum. Given the technical signs I described in this analysis, I see the index retesting its 21 ema in the daily chart in the next few days. Then we’ll see if it is a Dead Cat Bounce or not.
Either way, the Risk/Reward ratio favors long trades, and I see movements like this as opportunities to buy. There are dozens of great stocks out there looking amazing. For now, let’s keep our eyes open at the key points mentioned in this post.
I’ll keep you guys updated every day, so just remember to follow me to keep in touch with my future analyses!
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👉 Join the 5%: thefinancehydra.com/
💲💲 Project 5%: + 104%
🔹 S&P500: +35%
💪 Public track record.
