SPX - Volatility to wipe weak hands

Yesterday, after the FED decision, SPX gained altogether with other major U.S. indices. Despite that, we kept our stance and did not abandon our bearish price targets. Indeed, we noted that the relief rally was in progress and that the abrupt move up reflected the market's fragility. Therefore, we continue to be bearish on SPX, and we expect it to form new lows in the short term. Our short-term price target is 4100 USD, and our medium-term price target is 4000 USD.

Technical analysis - daily time frame
RSI and MACD remain bearish. Stochastic points to the upside. DM+ and DM- also show bearish conditions in the market. Meanwhile, declining ADX reflects a recent pause in selling pressure. Overall, the daily time frame is bearish.

Technical analysis - weekly time frame
RSI, MACD, and Stochastic are all bearish. The same applies to DM+ and DM-. ADX indicates that the bearish trend is gaining strength. Overall, the weekly time frame is bearish.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Trade active:

SPX made a low at 4106 USD. Our short-term price target of 4100 USD stays in place.