4 hour chart of SPX
On 29 September this year, SPX unsuccessfully tried to break the resistance level of 4330. During the June and August downtrends, this is where SPX had found support and bounced back (lowest points on 26 June and 18 August).
On 3 October, SPX lost another support at 4370. This is where SPX had consolidated in the first week of June this year. This has become the new resistance which SPX is trying to break today, 4 October.
4100-4130 is the next support level. SPX had consolidated at this level for a long period from April to May this year. Earlier in February, this was the resistance level that SPX wasn't able to overcome. In December 2022, this was also the level from which SPX had fallen twice.
SPX is considerably weak. See the gap between 4375 and 4400. SPX wasn't able to fill this gap. The maximum that it could reach was 4333 on 29 September.
SPX's next destination is 4100, where it will get the greatest support that it has ever received since the beginning of the current downtrend in July. If 4100 fails, there's not much stopping SPX from reaching the lows of October 2022.
On 29 September this year, SPX unsuccessfully tried to break the resistance level of 4330. During the June and August downtrends, this is where SPX had found support and bounced back (lowest points on 26 June and 18 August).
On 3 October, SPX lost another support at 4370. This is where SPX had consolidated in the first week of June this year. This has become the new resistance which SPX is trying to break today, 4 October.
4100-4130 is the next support level. SPX had consolidated at this level for a long period from April to May this year. Earlier in February, this was the resistance level that SPX wasn't able to overcome. In December 2022, this was also the level from which SPX had fallen twice.
SPX is considerably weak. See the gap between 4375 and 4400. SPX wasn't able to fill this gap. The maximum that it could reach was 4333 on 29 September.
SPX's next destination is 4100, where it will get the greatest support that it has ever received since the beginning of the current downtrend in July. If 4100 fails, there's not much stopping SPX from reaching the lows of October 2022.
Trade active:
Unexpectedly, on 6 October, SPX came back with a vengeance and broke the 4270 resistance level which has now become the new support. I expect SPX to try breaking 4330 resistance level and fail. In the unlikely case, it succeeds, the major resistance 4400 formed by the gap would be a near unsurmountable barrier. If this, too, gets broken, my thesis would be proved wrong and I will bet that SPX will go higher than 4600 by end October and reach 4800 by year end.
