SPX - Few bullish breakouts improve the picture for SPX
SPX shows signs of improvements similar to the majority of other U.S. indices. Over the past few days, it started to develop relatively bullish structures on the daily time frame. At the same time, the weekly time frame started to turn neutral, and selling pressure in the market ceased. We are turning increasingly bullish on SPX. However, we are also very cautious and we keep watching price action very closely. We will look for any signs of potential exhaustion in SPX as well as in other major U.S. indices.
Illustration 1.01
The chart above shows SPX in the daily time frame. It shows a bullish breakout above the resistance connecting major peaks throughout the recent correction. Additionally, SPX broke above two other resistance levels, particularly at 4 416.78 USD and 4 489.55 USD. These levels act now as support areas.
Technical analysis - daily time frame
RSI started to develop a bullish structure recently. However, over the past four days, it started to flatten and turn neutral. Stochastic oscillates in the bullish zone, however, it points to the downside. MACD is due to perform a bullish crossover which, if completed, would further bolster a bullish case for SPX. DM+ and DM- are bullish. ADX undergoes reset. Overall, the daily time frame is bullish.
Technical analysis - weekly time frame
RSI reversed to the upside which is bullish. Now we will watch whether it will manage to break its bearish structure (break above white line in Illustration 1.02). MACD and Stochastic are neutral. DM+ and DM- are bearish. ADX flattens. Overall, the weekly time frame is neutral.
Illustration 1.02
The bearish RSI structure on the weekly time frame remains intact as is shown in Illustration 1.02.
Support and resistance
Please feel free to express your own 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. Your own due diligence is highly advised before entering a trade.
Illustration 1.01
The chart above shows SPX in the daily time frame. It shows a bullish breakout above the resistance connecting major peaks throughout the recent correction. Additionally, SPX broke above two other resistance levels, particularly at 4 416.78 USD and 4 489.55 USD. These levels act now as support areas.
Technical analysis - daily time frame
RSI started to develop a bullish structure recently. However, over the past four days, it started to flatten and turn neutral. Stochastic oscillates in the bullish zone, however, it points to the downside. MACD is due to perform a bullish crossover which, if completed, would further bolster a bullish case for SPX. DM+ and DM- are bullish. ADX undergoes reset. Overall, the daily time frame is bullish.
Technical analysis - weekly time frame
RSI reversed to the upside which is bullish. Now we will watch whether it will manage to break its bearish structure (break above white line in Illustration 1.02). MACD and Stochastic are neutral. DM+ and DM- are bearish. ADX flattens. Overall, the weekly time frame is neutral.
Illustration 1.02
The bearish RSI structure on the weekly time frame remains intact as is shown in Illustration 1.02.
Support and resistance
Please feel free to express your own 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. Your own due diligence is highly advised before entering a trade.
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