SPX: New record! What's next? A complete analysis (H,D and W).
Hello traders and investors! Let’s analyze the SPX this Friday, and do our usual complete Multi Time Frame Analysis (MTFA) by looking at the 1h, D and W charts!
The index did a new record high today, which is incredible, and so far, there’s no top, pullback or reversal sign around here. The black line at 3870 is a support level, but the index could drop all the way to the 21 ema, and the trend would still be bullish.
The 3827 seems to be another Key Point, but the 3870 is more relevant, and we can see why by looking at the daily chart.
The 3870 is the previous All Time High, and if the SPX closes under it next week, then the odds of a sharper pullback increase dramatically.
In the daily chart we have some very solid and strong support levels at the 21 ema and purple trendline area, and this area would be a target if the index loses the 3870 again.
We should be aware of the low volume seen this week, which is not following the price. According to the 5th Tenet of the Dow Theory, “the volume must confirm the trend”. When we see a divergence like this, is an alert sign to us.
Now, the weekly chart:
Yep, the index denied completely the Bearish Engulfing seen last week, frustrating any expectation of a pullback to the 21 ema in the weekly chart.
Now, the index is doing another ATH, giving a headache to the bears, and again, not a single top/pullback/reversal sign around. We must keep our eyes open and focus on the points mentioned in this analysis, and if you liked it, remember to follow me to keep in touch with my ideas, and please, support this idea if it helped you!
Have a great weekend!
The index did a new record high today, which is incredible, and so far, there’s no top, pullback or reversal sign around here. The black line at 3870 is a support level, but the index could drop all the way to the 21 ema, and the trend would still be bullish.
The 3827 seems to be another Key Point, but the 3870 is more relevant, and we can see why by looking at the daily chart.
The 3870 is the previous All Time High, and if the SPX closes under it next week, then the odds of a sharper pullback increase dramatically.
In the daily chart we have some very solid and strong support levels at the 21 ema and purple trendline area, and this area would be a target if the index loses the 3870 again.
We should be aware of the low volume seen this week, which is not following the price. According to the 5th Tenet of the Dow Theory, “the volume must confirm the trend”. When we see a divergence like this, is an alert sign to us.
Now, the weekly chart:
Yep, the index denied completely the Bearish Engulfing seen last week, frustrating any expectation of a pullback to the 21 ema in the weekly chart.
Now, the index is doing another ATH, giving a headache to the bears, and again, not a single top/pullback/reversal sign around. We must keep our eyes open and focus on the points mentioned in this analysis, and if you liked it, remember to follow me to keep in touch with my ideas, and please, support this idea if it helped you!
Have a great weekend!
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