SPX: Are you afraid of a pullback? Key points to watch this week
Hello traders and investors! Let’s see how the SPX is doing today! We nailed another target, so we must update our thoughts.
The index finally hit our mid-term target at 4,595, and today it is trading above this price level! That’s great, but what to do now?
As I’ve been saying in the past few days, corrections are acceptable, and since we have many support levels, and we are still in a bull trend, we shouldn’t be scared if it drops. Do we see any pullback sign? No.
The trend is still clearly bullish, as the index didn’t stop from doing higher highs/lows at any moment, and there’s not a single bearish structure around. If it loses the 4,595, and fills the last gap (blue square), then we might see some weakness. Pay attention to the “if”.
In the daily chart, it seems we have a top sign, as we see what could be a Gravestone Doji or a Shooting Star candlestick pattern, just at the resistance (black line at 4,595). What’s more, the volume hasn’t been following the price, and this makes the index vulnerable to the volatility.
As far as I know, a sharper correction could bring the index all the way down to the 21 ema, and the bias would still be bullish. However, we must pay attention to the signs it’ll give to us in the 1h chart. Always wait for confirmation, and never try to anticipate the market. As the greatest trader that ever lived once said:
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.”
- Jesse Lauriston Livermore.
I’ll keep you guys updated every day on this, so remember to follow me to not miss any of my future analyses and my next targets!
The index finally hit our mid-term target at 4,595, and today it is trading above this price level! That’s great, but what to do now?
As I’ve been saying in the past few days, corrections are acceptable, and since we have many support levels, and we are still in a bull trend, we shouldn’t be scared if it drops. Do we see any pullback sign? No.
The trend is still clearly bullish, as the index didn’t stop from doing higher highs/lows at any moment, and there’s not a single bearish structure around. If it loses the 4,595, and fills the last gap (blue square), then we might see some weakness. Pay attention to the “if”.
In the daily chart, it seems we have a top sign, as we see what could be a Gravestone Doji or a Shooting Star candlestick pattern, just at the resistance (black line at 4,595). What’s more, the volume hasn’t been following the price, and this makes the index vulnerable to the volatility.
As far as I know, a sharper correction could bring the index all the way down to the 21 ema, and the bias would still be bullish. However, we must pay attention to the signs it’ll give to us in the 1h chart. Always wait for confirmation, and never try to anticipate the market. As the greatest trader that ever lived once said:
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.”
- Jesse Lauriston Livermore.
I’ll keep you guys updated every day on this, so remember to follow me to not miss any of my future analyses and my next targets!
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