SPX: A dangerous situation! Pay attention to these KEY POINTS!
Hello traders and investors! Let’s see how the SPX is doing today!
First, in the 1h chart, it lost the support level we mentioned yesterday, at 4,456. According to the Principle of Polarity, previous support levels will work as resistances in the future (and vice-versa), and this is exactly what’s going on here.
As evidenced by the red circles, the 4,456 worked as a support level at least 3 times recently, and today, this point is working as a resistance. What’s more, the 21 ema is another resistance that has been holding the price, indicating that it is a bear trend in the short-term.
If we break these resistances, great, the index will finally have a chance to reverse, and we could fill the gap at 4,481 – but it must show us some reaction quickly. If it fails in breaking these points, the bear trend will persist, and in this case, it might seek the 61.8% retracement in the daily chart:
The 61.8% retracement is at 4,345, meaning we have a lot to drop. It wouldn’t be easy, as we have the 50% retracement, along with the red line at 4,416 (March’s top) to hold the price.
To make the situation more complex, we have the 21 ema in the daily chart working as a resistance too. The index is between a lot of support and resistance levels, in what I call "danger zone".
In my view, as long as the index remains in this area, between the resistances mentioned in the 1h chart and the 21 ema in the daily chart, and the support levels seen in the daily chart (50% retracement, red line at 4,416), nothing interesting will happen. The scenario is extremely complex, but fortunately, we have many individual stocks that are looking good right now.
I’ll keep you guys updated every day, so remember to follow me to not miss any of my future analyses!
First, in the 1h chart, it lost the support level we mentioned yesterday, at 4,456. According to the Principle of Polarity, previous support levels will work as resistances in the future (and vice-versa), and this is exactly what’s going on here.
As evidenced by the red circles, the 4,456 worked as a support level at least 3 times recently, and today, this point is working as a resistance. What’s more, the 21 ema is another resistance that has been holding the price, indicating that it is a bear trend in the short-term.
If we break these resistances, great, the index will finally have a chance to reverse, and we could fill the gap at 4,481 – but it must show us some reaction quickly. If it fails in breaking these points, the bear trend will persist, and in this case, it might seek the 61.8% retracement in the daily chart:
The 61.8% retracement is at 4,345, meaning we have a lot to drop. It wouldn’t be easy, as we have the 50% retracement, along with the red line at 4,416 (March’s top) to hold the price.
To make the situation more complex, we have the 21 ema in the daily chart working as a resistance too. The index is between a lot of support and resistance levels, in what I call "danger zone".
In my view, as long as the index remains in this area, between the resistances mentioned in the 1h chart and the 21 ema in the daily chart, and the support levels seen in the daily chart (50% retracement, red line at 4,416), nothing interesting will happen. The scenario is extremely complex, but fortunately, we have many individual stocks that are looking good right now.
I’ll keep you guys updated every day, so remember to follow me to not miss any of my future analyses!
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