• The index lost the 21 ema in the daily chart, which was our last target since it triggered our Spinning Top candlestick pattern last week (link to my previous public analysis is below this post);
• So far, there’s bullish reaction on the SPX indicating that the sell-off is over, therefore, it could drop to lower levels;
• If it loses the 3,911 area (previous support/resistance level multiple times in the past) then the next target would be the gap near 3,800 (yellow square);
• Is there anything the SPX must do in order to avoid such drop? Yes, it must do a clear bullish pattern/structure, preferably above 3,911. This might save the bullish bias that started on October 13 – otherwise, it would just reverse the sentiment;
• Tomorrow we’ll have our answer. Either way, I’ll keep you posted on this.
Remember to follow me to keep in touch with my daily analyses!
• So far, there’s bullish reaction on the SPX indicating that the sell-off is over, therefore, it could drop to lower levels;
• If it loses the 3,911 area (previous support/resistance level multiple times in the past) then the next target would be the gap near 3,800 (yellow square);
• Is there anything the SPX must do in order to avoid such drop? Yes, it must do a clear bullish pattern/structure, preferably above 3,911. This might save the bullish bias that started on October 13 – otherwise, it would just reverse the sentiment;
• Tomorrow we’ll have our answer. Either way, I’ll keep you posted on this.
Remember to follow me to keep in touch with my daily analyses!
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