Hello traders and investors! Today is a Red Monday (again), and the market is crashing sharply. Let’s see what’s going on here.
First, in the 1h chart, we don’t see any meaningful bullish structure, however, I agree that if the index hold itself around the support at 4,287 I’ll start to believe in a bullish reversal.
This could be a Double Bottom chart pattern, and the final confirmation would come if we defeat the red line at 4,375, which is the peak between the two valleys, and the technical buy sign on the SPX.
In the daily chart, it seems the index can’t help itself but drop. We are under the 21 ema, and we are not doing higher highs/lows, so we can’t say it is a bull trend anymore (in the weekly chart it is still a bull trend, though).
On the bright side, we have too many support levels to work with. We have the red line at 4,233, which is at the same time the 38.2% Fibonacci’s Retracement. I see this as the best support level for the SPX to react, and any good bullish pattern down there will be a buy sign.
If the SPX doesn’t react and trigger the Double Bottom in the 1h chart, the red line is our next stop. Let’s see how it’ll behave this week.
Remember to follow me to keep in touch with my daily updates! Have a good day.
First, in the 1h chart, we don’t see any meaningful bullish structure, however, I agree that if the index hold itself around the support at 4,287 I’ll start to believe in a bullish reversal.
This could be a Double Bottom chart pattern, and the final confirmation would come if we defeat the red line at 4,375, which is the peak between the two valleys, and the technical buy sign on the SPX.
In the daily chart, it seems the index can’t help itself but drop. We are under the 21 ema, and we are not doing higher highs/lows, so we can’t say it is a bull trend anymore (in the weekly chart it is still a bull trend, though).
On the bright side, we have too many support levels to work with. We have the red line at 4,233, which is at the same time the 38.2% Fibonacci’s Retracement. I see this as the best support level for the SPX to react, and any good bullish pattern down there will be a buy sign.
If the SPX doesn’t react and trigger the Double Bottom in the 1h chart, the red line is our next stop. Let’s see how it’ll behave this week.
Remember to follow me to keep in touch with my daily updates! Have a good day.
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