SPX has two possible outcomes from this sideways consolidation which traders should look for in short term moves. Looking within the breakout area we will be able to confirm price movement. Volume, since the general downtrend confirmed on the 2nd of February, has been steadily declining which should give way to a higher, breakout level, volume spike occurring within the time frame of the green box. Initial support and resistance will be hit indicated by red and black horizontal rays respectively. Once price has exited the area of the green box with above average volume, we can confirm the trend in the direction the breakout has occurred. Optimal buy time will be first green candle to break above previous high, with stop at the low of the last red candle, or the first red candle to break below a previous low, with a stop at the high of the last green candle.
Comment:
SPX is currently breaking out of the intended breakout area with low volume, confirmation is not complete without a reasonable spike in volume to confirm price action. wait for volume confirmation before taking trade, use hourly chart to find breakout level volume if looking for early entry