SPX: Next KEY POINTS to watch next week!
Hello traders and investors! Let’s see how the SPX is doing this Friday!
First, it is interesting to notice that it dropped below the 21 ema this week, in the 1h chart, and it did a brief sequence of lower highs/lows, a trait of a bear trend.
However, we see some reaction right now, as it is defeating the 21 ema again, and trading above it, and it did a higher high. Now it seems the green line at 4,681 is a decisive point for the short-term, as if it works as a ceiling for the index, it might drop a little bit more in the daily chart, and frustrate the bullish reaction seen today.
As we can see, despite the drop, in the daily chart the trend is still bullish. It has been going up nicely, it is above the 21 ema, and the ema is pointing up. All a trait of a bull trend.
The problem is that it has been nearly one month since the last time we retested the 21 ema, and a pullback to this support level is expected, and even desirable, as this might be another opportunity to buy.
As long as we are far from the 21 ema, the index is not a buy. If it loses the 21 ema, and seeks the 4,546 (red line), the bullish bias would be weaker, but not ruined.
In my view, it would be good to see the index doing some sideways movements for a while. The main key points for us are the green line in the 1h chart, and the 21 ema in the daily chart. For now, we don’t have a clear sign, but probably next week we’ll have our answer.
If you liked this analysis, remember to follow me to keep in touch with my updates on stocks and indices!
Have a good weekend!
First, it is interesting to notice that it dropped below the 21 ema this week, in the 1h chart, and it did a brief sequence of lower highs/lows, a trait of a bear trend.
However, we see some reaction right now, as it is defeating the 21 ema again, and trading above it, and it did a higher high. Now it seems the green line at 4,681 is a decisive point for the short-term, as if it works as a ceiling for the index, it might drop a little bit more in the daily chart, and frustrate the bullish reaction seen today.
As we can see, despite the drop, in the daily chart the trend is still bullish. It has been going up nicely, it is above the 21 ema, and the ema is pointing up. All a trait of a bull trend.
The problem is that it has been nearly one month since the last time we retested the 21 ema, and a pullback to this support level is expected, and even desirable, as this might be another opportunity to buy.
As long as we are far from the 21 ema, the index is not a buy. If it loses the 21 ema, and seeks the 4,546 (red line), the bullish bias would be weaker, but not ruined.
In my view, it would be good to see the index doing some sideways movements for a while. The main key points for us are the green line in the 1h chart, and the 21 ema in the daily chart. For now, we don’t have a clear sign, but probably next week we’ll have our answer.
If you liked this analysis, remember to follow me to keep in touch with my updates on stocks and indices!
Have a good weekend!
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