Hello traders and investors! The SPX is going up today, and it is giving us some interesting signals!
First, in the hourly chart, the idea of a H&S chart pattern was completely negated by this week’s movement. The pattern wasn’t triggered, but this reaction is an indicator that tells us that there are buyers in the area. Oh, and if you missed my last analysis, the link to it is below.
Right now, it seems nothing will stop SPX to hit its resistance at 3,425 (blue line). The 21 ema is pointing up, and only if SPX loses it, along with the 3397, we’ll see some pullback in the short-term.
Despite of today’s movement, we can’t discard the possibility of a pullback ahead, especially if SPX hits its resistance, and this is better seen from the daily chart:
Yes, we have what seems to be an Inverted H&S, but we all agree that the volume is below the average for the past few days. This isn’t a good thing for the index, but the bullish reaction this week makes things more complex.
Either way, we can expect some erratic movements as the elections are on the market’s radar, along with the political scenario (stimulus package). It seems the market doesn’t care about the Second Wave, and Trump’s health status was quickly priced.
Let’s see if the resistance at 3,425 will hold the price. If that’s the case, probably SPX will do a pullback in the daily chart as well. Now, I’m skeptical about the 3,200 zone, but a pullback to the 3,323 is something reasonable to think, and a target to aim in the short-term.
And if you liked this idea, please, support it! And follow me to keep in touch with my daily studies! I’m sure you’ll find something interesting around here.
Always you have the best and most clear analysis ..... highly recommended for all ..... BRB in DEC
Nathan_Black
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@FIRAS.msc, Firas, it is a pleasure to work with you, man! I hope to see you in December, my friend!
Thank you very much for the support!
themnahf
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trump took care of it
YousafAli
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Great analysis as always!
Nathan_Black
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@YousafAli, Thanks Yousaf! Always nice to se you around!
IRNY
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Right while everyone is high on bull juice today
cytjy
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Great analysis! Any SPX updates??
SunnyHillCapital
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Fantastic analysis, thank you for sharing such amazing work!
dlevens
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"Right now, it seems nothing will stop SPX to hit its resistance at 3,425 (blue line)."
Almost right after posting this the SPX dropped significantly, how does this change your view? Currently sitting around 3360.
Nathan_Black
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@dlevens, Hey Dlevens! It doesn't, because we already discussed the possibility of this scenario in this analysis.
"Let’s see if the resistance at 3,425 will hold the price. If that’s the case, probably SPX will do a pullback in the daily chart as well. Now, I’m skeptical about the 3,200 zone, but a pullback to the 3,323 is something reasonable to think, and a target to aim in the short-term."