SPX: Weekly outlook and Multi Time Frame Analysis.

23 באוק׳ 2020

Hello traders and investors! Let’s see what’s new on SPX, and since it is Friday, let's do a complete MTFA by studing all our main time frames (H,D and W).

First, the hourly chart is inside a Descending Channel, and now it is struggling a lot to defeat its resistance at the upper purple line. Also, it has a clear pivot point at 3,466, and if triggered SPX would finally escape from this bearish trend in the short-term, and it would seek further resistances.

Meanwhile, it seems the price formed a bottom area near this blue line at 3,425, which is a support level better seen in the daily chart:



Yes, the blue line is quite important, as it worked as support and resistance alike several times since September. Only if SPX loses this support it would engage in a stronger bearish momentum, and in this case, there are no supports left other than 3,323 to hold the price.

On the other hand, the weekly chart is quite suggestive as well:



We have an idea of a double top here, and a retest of the 21 ema or the purple line would be expected. Last week’s candlestick could be a Spinning Top, but the pattern wasn’t triggered, meaning it didn’t close under 3,440 this week.

So far, we have no clear bearish reaction, and SPX is resisting quite well. It did a pullback after a bullish movement, and now the bulls are buying near a support level. Who’s going to win this battle? Only time will tell, but the points mentioned in this analysis will offer you some clues about what’s next.

And if you like this analysis, please, support it! And follow me to keep in touch with my daily analyses!

Have a great weekend.