SPX: New high! What could trigger a pullback here?
Hello traders and investors! Let’s see how the SPX is doing today!
The index is in a very strong bull trend, and there are no top, pullback or reversal signs ahead of us! We have a new record high today, which is incredible, but the only thing that bugs me is the volume. Despite the bullish run we had last week, the volume didn’t follow this movement, and in fact, it had decreased.
Of course, this alone is not a reason to believe we’ll have a pullback next, as the price is not confirming anything yet, but is something to be aware of. Now, what kind of sign could work as a pullback sign? Let’s see the hourly chart for that:
The index is supposed to do pullbacks to the 21 ema, and the trend will remain bullish, but if it loses the 21 ema, then we may consider a sharper pullback ahead, and if it starts trading below the black line at 3870, then the pullback will occur in the daily chart as well.
Keep in mind that if these signs trigger a pullback, the index could drop to its purple trendline seen in the daily chart again (meaning, something between 2 – 2.5%) and this is fine. This would be just a pullback and we still would be in a bull trend.
Pullback signs are different than reversal signs, which are slightly more complex to identify. But so far, we are good. Follow me to keep updated about my thoughts on the SPX and other stocks, and if you liked this idea, please, support it!
Thank you very much.
The index is in a very strong bull trend, and there are no top, pullback or reversal signs ahead of us! We have a new record high today, which is incredible, but the only thing that bugs me is the volume. Despite the bullish run we had last week, the volume didn’t follow this movement, and in fact, it had decreased.
Of course, this alone is not a reason to believe we’ll have a pullback next, as the price is not confirming anything yet, but is something to be aware of. Now, what kind of sign could work as a pullback sign? Let’s see the hourly chart for that:
The index is supposed to do pullbacks to the 21 ema, and the trend will remain bullish, but if it loses the 21 ema, then we may consider a sharper pullback ahead, and if it starts trading below the black line at 3870, then the pullback will occur in the daily chart as well.
Keep in mind that if these signs trigger a pullback, the index could drop to its purple trendline seen in the daily chart again (meaning, something between 2 – 2.5%) and this is fine. This would be just a pullback and we still would be in a bull trend.
Pullback signs are different than reversal signs, which are slightly more complex to identify. But so far, we are good. Follow me to keep updated about my thoughts on the SPX and other stocks, and if you liked this idea, please, support it!
Thank you very much.
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