The SPX is at a critical juncture

7 May

Last Friday, the SPX gapped up at the open and temporarily broke above the 50-day SMA during the trading session. Finally, yesterday, the SPX managed to close above this line of resistance, which is a positive development. However, a failure of the price to defend the ground above this level, now acting as support, for multiple consecutive days will be concerning. Similarly concerning will be the flattening of RSI, MACD, and Stochastic, which are in the process of reversing to the upside.

Illustration 1.01

The image above displays the daily graph of the SPX and two simple moving averages. Yellow arrows highlight the initial rejection at the 50-day SMA on 29th April 2024 and the successful breakout on 3rd May 2024.

Technical conditions
Daily time frame = Slightly bullish
Weekly time frame = Bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Therefore, your own due diligence is highly advised before entering a trade.