SPX500, Major Gap Has Been Filled, What To Consider Now!

6 sie 2020

Hello Traders Investors And Community, welcome to this update-analysis where we are looking at the S&P 500 4-hour timeframe perspective, the recent events, the gap-fill occurred, what to consider now and what are possible outcomes further next times. The major gap which the index formed in the corona-breakdowns seen this year has been filled now properly as expected therefore it is important currently how the index develops further and if there can come a possible continuation or fall back to lower levels, overall it is important to note that the recovery is not fundamentally backed as the real economy is still damaged by corona and the gains seen are mainly provided by retailers as smart-money is currently still staying out of the market, such perspectives can lead to a speculative market environment which does not mean it can convert to a healthy bullish environment but it means that rallies and new highs should be seen crucial, in this case I detected some important signals meaningful for the next outcomes of the index.

Looking at my chart you can watch there that the index just confirmed recently the gap-fill and now it is possible that supply enters the market firstly providing a correction as such mechanism is seen often after such gap-fills, otherwise it is possible that bulls are strong enough and just move above the gap-fill-level. Currently it is more possible that the index firstly shows a pull-back and consolidation between the higher boundary of the channel and the support/resistance level as seen marked in my chart. Basically there are two possible outcomes given, the first is the bullish breakout scenario with a new high forming which is more likely at the moment as the index has some solid supports as you can watch, the second is that the index firstly visits lower levels to reallocate newly which is the unlikely scenario as the index firstly has to take out the solid support levels before moving on, but as the rally is still not fundamentally backed this scenario should not be ignored at all but when the index holds the support properly it will move on to form this historical new high which will be worthwile and will tell if its just a huge bull-trap or solid rally.

The current situation is a situation where the index has to show if its underlying pace is strong enough to advance in the structure but when considering all this it is important that the real economy also recovers together with the market, till this is not happen all rallies happening are highly speculative and walking into the danger of a possible bearish volatility similarly to those seen this year. When the index takes out the previous high and forms another one it is from high importance to do this sustainable because when it does not and the area is just visit a short time to go back into the established range this can be a fake breakout leading to downside ahead. It will be highly interesting how this is playing out and if the index has the ability to take out the highs substantially. The next times will show how the more likely scenario is playing out and if this can also be backed of a solid real economy which is growing together with the market because this is what is needed till then the market is still in a unconfirmed status and can reverse to the bearish side back again which can be sudden and heavier than before.

In this manner, thank you for watching, support for more market insight and have a good day!
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Information provided is only educational and should not be used to take action in the markets

13 wrz 2023

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ANALYSIS UPDATE: The S&P 500 continued with a major breakout above the acceleration levels.

Since the S&P 500 accelerated the price dynamics within the new all-time high zones it continued with massive breakouts into the trend direction.