SPX, Formed New All-Time-High, These Scenarios To Consider Now!

Aug 18, 2020

Hi my friends,

Welcome to this 1-hour timeframe perspective SPX update, the index recently confirmed a new all-time-high which exceeded the pre-corona all-time-high, now the index is in a decisive situation as the price just pulled backward right after the breakout which can indicate a bull-trap, a close above the level would have been a stronger move now the index has to show certain price-action to make it a sustainable breakout or decline will set in.

You can see in my chart the possible bull-flag the index is forming here marked in blue with the new all-time-high marked just touching the upper boundary of this bull-flag-formation, what is important now to confirm this bull-flag rightly is to move above the established high and close above the upper boundary of the possible bull-flag otherwise when this does not happen and the index fails here this can just be a bull-trap which reverses course to the downside, this will show up when the index moves below the lower boundary and below the 40-EMA marked in black but as the index still holding above these supports the bullish breakout scenario is more likely. This ongoing mechanism can be traded either aggressively with an entry in the bull-flag or conservative when entry after confirmation, although the aggressive entry, is possible the conservative will be much better as the price confirms the formation and activates the targets.

Next times will show if this new established high will sustain and follow up with new highs or this was just a huge bull-trap invalidating to the downside, what is important to keep in mind that there are still big divergences between real economy and stocks while the real economy is damaged stocks making gains this can lead to a speculative environment, therefore we need to elevate further and if SPX manages to move above the range and form new highs how it establishes there as fundamental factors not necessarily supporting a rally.

In this manner, thank you for watching, support for more market insight, all the best!

Information provided is only educational and should not be used to take action in the market.

Sep 14, 2023

Note

ANALYSIS UPDATE: The S&P 500 continued with the trend acceleration within the ascending channel formation within which it built up price action momentum.

Since the S&P500 moved forward with the price action momentum it emerged with a final upper boundary breakout to increase the massive breakout scenarios.