SPX: The most important support for the short/mid-term!
Hello traders and investors! Let’s see how the SPX is doing today!
Yes, it is back to the support area around 4,456 (black line), as we mentioned Friday, and it is in a very delicate situation now.
As I mentioned in our last analysis, it must not lose this support area, otherwise, it could drop more, probably to the 4,343 (61.8% retracement in the D chart, check the chart below).
However, if the index reacts, and closes above this support level again, it might consolidate a bottom. The problem is that it is not confirming any bullish reaction so far, but I’ll be happy if it closes above the 4,456 today.
In the daily chart, we see the 38.2% Fibonacci’s Retracement holding the price again, and this retracement is exactly where the 4,456 is (black line in the 1h chart above). Therefore, I consider this an important support level to work with.
Usually, when the index respects the 38.2% retracement for a moment, but loses it afterwards, it drops to the 61.8% retracement, ignoring the 50% (this is not a rule, but happens most of the time).
To sum up, if the SPX is about to react, it is now or never, as we are in the last technical support level that is preventing a sharper correction. I’ll keep you guys updated every day on this, so remember to follow me to not miss any of my daily analyses!
Yes, it is back to the support area around 4,456 (black line), as we mentioned Friday, and it is in a very delicate situation now.
As I mentioned in our last analysis, it must not lose this support area, otherwise, it could drop more, probably to the 4,343 (61.8% retracement in the D chart, check the chart below).
However, if the index reacts, and closes above this support level again, it might consolidate a bottom. The problem is that it is not confirming any bullish reaction so far, but I’ll be happy if it closes above the 4,456 today.
In the daily chart, we see the 38.2% Fibonacci’s Retracement holding the price again, and this retracement is exactly where the 4,456 is (black line in the 1h chart above). Therefore, I consider this an important support level to work with.
Usually, when the index respects the 38.2% retracement for a moment, but loses it afterwards, it drops to the 61.8% retracement, ignoring the 50% (this is not a rule, but happens most of the time).
To sum up, if the SPX is about to react, it is now or never, as we are in the last technical support level that is preventing a sharper correction. I’ll keep you guys updated every day on this, so remember to follow me to not miss any of my daily analyses!
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