SPX: Hit our TARGET but it is CRASHING now! What's next?
Hello traders and investors! Despite the volatility, the index did exactly as we described in our last analysis. It hit our target, and it is crashing. Let’s see what’s going on.
Yesterday I mentioned the 4,200 as the key point that would bring the index to the 4,299 (purple line). The index hit our target with an incredible precision, just to drop again. The link to my previous analysis is below this post, as usual.
Today, it gapped down (yellow square), lost the support at the 4,200 (previous resistances should work as support levels, in theory), and it lost the 21 ema too. Now, it seems it is seeking the next support at 4,148 (black line).
If the index loses this black line, it’ll face some problems, as the next support is only at 4,062. Let’s take a look at the daily chart for more clues.
Today’s reaction is rejecting the bullish candlestick it did yesterday, and it is below our support at 4,167 again. It almost hit the 21 ema in the daily chart, something I was expecting it would do since it did the Hammer candlestick pattern on May 2 (just check my analysis on May 3 for more details).
This reversal pattern was a success, as we expected, but right now, we can’t say the index is a buy again. It is not a sell either, as we are just at support levels and the risk/reward ratio is not attractive at all (to me, at least).
For now, I’m neutral on the index, but many individual stocks are looking incredible, if you ask me. There are plenty of opportunities out there, much more interesting than the SPX, if you know where to look.
I do daily analysis on the SPX, so if you want to keep in touch, remember to follow me to not miss any of my future analyses.
Have a good day.
Yesterday I mentioned the 4,200 as the key point that would bring the index to the 4,299 (purple line). The index hit our target with an incredible precision, just to drop again. The link to my previous analysis is below this post, as usual.
Today, it gapped down (yellow square), lost the support at the 4,200 (previous resistances should work as support levels, in theory), and it lost the 21 ema too. Now, it seems it is seeking the next support at 4,148 (black line).
If the index loses this black line, it’ll face some problems, as the next support is only at 4,062. Let’s take a look at the daily chart for more clues.
Today’s reaction is rejecting the bullish candlestick it did yesterday, and it is below our support at 4,167 again. It almost hit the 21 ema in the daily chart, something I was expecting it would do since it did the Hammer candlestick pattern on May 2 (just check my analysis on May 3 for more details).
This reversal pattern was a success, as we expected, but right now, we can’t say the index is a buy again. It is not a sell either, as we are just at support levels and the risk/reward ratio is not attractive at all (to me, at least).
For now, I’m neutral on the index, but many individual stocks are looking incredible, if you ask me. There are plenty of opportunities out there, much more interesting than the SPX, if you know where to look.
I do daily analysis on the SPX, so if you want to keep in touch, remember to follow me to not miss any of my future analyses.
Have a good day.
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