Hello traders and investors! Let’s see how the SPX is doing today!
In the 1h chart, it is clearly in a bull trend, doing higher highs/lows. There’s not a single bearish candlestick/chart pattern around, so all we can assume is that the trend will persist, until a clear reversal occurs (Dow Theory, 6th tenet).
If it loses again the purple line, then it’ll ruin the bullish bias. This purple line is important because it was a previous top on Jan 26, and it is working as a support today. According to the Principle of Polarity, previous support/resistance levels are going to work as resistances/supports in the future.
We have a gap around 4,625, which is a natural target of this bull trend.
After many weeks, the SPX finally lost its purple trend line in the weekly chart, indicating some long-term exhaustion. This is different from a bear trend, as we lack bearish structure, but is a warning sign for sure. It is good that it did a Hammer candlestick pattern just above the previous support at the black line, last week.
This week, it is trying to resume the bullish momentum, but the question is for how long it’ll keep going up. Or even better, is this a Dead Cat Bounce or not? What’s the difference? Well, we just hit the 21 ema in the weekly chart, if it triggers a bearish structure over there, the chances of a DCB increases. For now, there’s nothing to do but wait for more signs, otherwise we would just be guessing.
If you want to keep in touch with my daily analysis, remember to follow me and I’ll keep you updated.
In the 1h chart, it is clearly in a bull trend, doing higher highs/lows. There’s not a single bearish candlestick/chart pattern around, so all we can assume is that the trend will persist, until a clear reversal occurs (Dow Theory, 6th tenet).
If it loses again the purple line, then it’ll ruin the bullish bias. This purple line is important because it was a previous top on Jan 26, and it is working as a support today. According to the Principle of Polarity, previous support/resistance levels are going to work as resistances/supports in the future.
We have a gap around 4,625, which is a natural target of this bull trend.
After many weeks, the SPX finally lost its purple trend line in the weekly chart, indicating some long-term exhaustion. This is different from a bear trend, as we lack bearish structure, but is a warning sign for sure. It is good that it did a Hammer candlestick pattern just above the previous support at the black line, last week.
This week, it is trying to resume the bullish momentum, but the question is for how long it’ll keep going up. Or even better, is this a Dead Cat Bounce or not? What’s the difference? Well, we just hit the 21 ema in the weekly chart, if it triggers a bearish structure over there, the chances of a DCB increases. For now, there’s nothing to do but wait for more signs, otherwise we would just be guessing.
If you want to keep in touch with my daily analysis, remember to follow me and I’ll keep you updated.
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👉 Join the 5%: thefinancehydra.com/
💲💲 Project 5%: + 104%
🔹 S&P500: +35%
💪 Public track record.
