Technical Overview of S&P500(SPX)
Good Evening, Everyone!
$SPX ( S&P500 ) as of March 04, 2021: SPX decreased by 51.25 (-1.34%) points.
SPX formed a Rounding-Top Pattern, also referred to as an inverse saucer pattern. Technical analysis of price information suggests that a rounding top may form at the end of an extended upward trend supported by an inverted volume pattern. This price pattern may indicate a reversal in the long-term price movement. The pattern is evident in both time frames.
SPX made a lower low but rebound before touching the rounding-top pattern's neckline near EMA100. The cracking of the neckline may strengthen the downfall. As with all technical chart patterns, the rounding-top pattern is not some infallible prediction device. It suggests that investors are weakening in their resolve to hold the stock and may begin selling shares in larger numbers, but this doesn't always happen. When the price fails to follow through with a downward trend after the pattern has been exhibited, it has been observed to rebound from the support level and begin retracing higher prices.
If it rebounds and managed to stay above EMA50 at 3807.60, we may see it consolidate between 3928.65-3789.54.
But if it cracks the neckline at 3694.12, we have support around 3660 and at EMA100 @ 3597.80.
The weekly chart is still maintaining an upward channel and got support from EMA20 at 3703.24. SPX will be likely to rebound from the lower boundary of the channel around 3662.
Weekly Chart:
-Southwind
Good Evening, Everyone!
$SPX ( S&P500 ) as of March 04, 2021: SPX decreased by 51.25 (-1.34%) points.
SPX formed a Rounding-Top Pattern, also referred to as an inverse saucer pattern. Technical analysis of price information suggests that a rounding top may form at the end of an extended upward trend supported by an inverted volume pattern. This price pattern may indicate a reversal in the long-term price movement. The pattern is evident in both time frames.
SPX made a lower low but rebound before touching the rounding-top pattern's neckline near EMA100. The cracking of the neckline may strengthen the downfall. As with all technical chart patterns, the rounding-top pattern is not some infallible prediction device. It suggests that investors are weakening in their resolve to hold the stock and may begin selling shares in larger numbers, but this doesn't always happen. When the price fails to follow through with a downward trend after the pattern has been exhibited, it has been observed to rebound from the support level and begin retracing higher prices.
If it rebounds and managed to stay above EMA50 at 3807.60, we may see it consolidate between 3928.65-3789.54.
But if it cracks the neckline at 3694.12, we have support around 3660 and at EMA100 @ 3597.80.
The weekly chart is still maintaining an upward channel and got support from EMA20 at 3703.24. SPX will be likely to rebound from the lower boundary of the channel around 3662.
Weekly Chart:
-Southwind
