SPX: Weekly Outlook and Key Points.
Hello traders and investors! Let’s see how the S&P 500 is doing today!
First, by looking at the 1h chart, we see that the index is inside a boring congestion, not doing anything meaningful or interesting during this whole week.
The bias is still slightly bullish, though, but for every congestion we have something called Time Correction – the price doesn’t have strength to keep climbing, but it seems it can’t drop either, so it moves sideways and let the 21 ema hit the price, instead of dropping to the 21 ema.
This support level could hold the price, yes, but I think the red line at 3884 is more interesting and meaningful, and the reason why is in the daily chart:
The red line represents this week’s low, and if the index loses it, then we could see a pullback to the 21 ema again.
The volatility could help this scenario to materialize especially considering that the index has been going up with volume lower than the average. This makes SPX more vulnerable to any negative catalyst, but again, this could trigger a pullback to the 21 ema only. In the worst-case scenario it would hit the purple trendline. So far, we have not a single reversal sign, so we can’t work with a possibility of a reversal, just with a pullback.
Let’s see how the index will behave next week, and if you want to keep in touch with my daily analyses, remember to follow me, and please, support this idea if you liked it!
Have a great weekend and a nice Holiday. See you on Tuesday.
First, by looking at the 1h chart, we see that the index is inside a boring congestion, not doing anything meaningful or interesting during this whole week.
The bias is still slightly bullish, though, but for every congestion we have something called Time Correction – the price doesn’t have strength to keep climbing, but it seems it can’t drop either, so it moves sideways and let the 21 ema hit the price, instead of dropping to the 21 ema.
This support level could hold the price, yes, but I think the red line at 3884 is more interesting and meaningful, and the reason why is in the daily chart:
The red line represents this week’s low, and if the index loses it, then we could see a pullback to the 21 ema again.
The volatility could help this scenario to materialize especially considering that the index has been going up with volume lower than the average. This makes SPX more vulnerable to any negative catalyst, but again, this could trigger a pullback to the 21 ema only. In the worst-case scenario it would hit the purple trendline. So far, we have not a single reversal sign, so we can’t work with a possibility of a reversal, just with a pullback.
Let’s see how the index will behave next week, and if you want to keep in touch with my daily analyses, remember to follow me, and please, support this idea if you liked it!
Have a great weekend and a nice Holiday. See you on Tuesday.
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