SPX: Is it a buy right now?
Hello traders and investors! Let’s see how the SPX is doing today!
We are dropping today once again, thanks to domestic catalysts, but its movements have been very technical so far.
Since it lost the 21 ema again, the index is quite erratic, however, this drop seems to be a pullback to the Fibonacci’s Retracements. We have the 50% and the 61.8% to hold the price today. We have an open gap at 4,198, but I’m not sure if it’ll be filled, as the retracements are working nicely so far.
Today’s reaction is trying to frustrate a possible Double Bottom chart pattern on the index, making the situation very complex. The daily chart offers us more clues:
Here the trend is clearly bearish, and there’s no bullish structure that could convince me otherwise. If it recovers and triggers the Double Bottom in the 1h chart again, then it’ll probably go to its 21 ema again, then we’ll have to wait to see it this would be a dead cat bounce or not.
Despite the lack of strength, the volume is increasing, and the index is near a support level, making it a good point for a reaction, however, without confirmation, there’s no way it is a good buy.
In my personal view, the index is not good to buy, neither to sell, and there are many other individual stocks that are looking much better than the SPX. I’ll keep you guys posted on this, so remember to follow me to not miss any of my future analyses.
We are dropping today once again, thanks to domestic catalysts, but its movements have been very technical so far.
Since it lost the 21 ema again, the index is quite erratic, however, this drop seems to be a pullback to the Fibonacci’s Retracements. We have the 50% and the 61.8% to hold the price today. We have an open gap at 4,198, but I’m not sure if it’ll be filled, as the retracements are working nicely so far.
Today’s reaction is trying to frustrate a possible Double Bottom chart pattern on the index, making the situation very complex. The daily chart offers us more clues:
Here the trend is clearly bearish, and there’s no bullish structure that could convince me otherwise. If it recovers and triggers the Double Bottom in the 1h chart again, then it’ll probably go to its 21 ema again, then we’ll have to wait to see it this would be a dead cat bounce or not.
Despite the lack of strength, the volume is increasing, and the index is near a support level, making it a good point for a reaction, however, without confirmation, there’s no way it is a good buy.
In my personal view, the index is not good to buy, neither to sell, and there are many other individual stocks that are looking much better than the SPX. I’ll keep you guys posted on this, so remember to follow me to not miss any of my future analyses.
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