SPX: Target hit. What's next?

28 янв. 2021 г.

Hello traders and investors! Ok, so the SPX did what it should’ve done, and this is very good. Let’s see what’s going on here.

The index lost the 3827, and it hit precisely our target yesterday, as we discussed in my previous analyses (if you missed, I’ll leave the links below, as usual).

Today, the index found a resistance at the 3827, which was the previous support, and this is very normal - the index is just obeying the Principle of Polarity (previous supports will work as resistances in the future). But now what?

If the index defeats again the 3827, it’ll trigger a pivot point that could lead SPX to the green line at 3861 again. Probably the last gap (yellow area) would help to attract the price, as they work as magnets.

Now, let’s see the daily chart:



The index hit the purple trendline with astonishing precision, and this is why I love Price Action. Now we have a Harami, which usually has a random chance of working as a reversal, but in my experience, when it is near a support level, the odds increase.

The only thing that could ruin the bullish momentum would be if the SPX loses today’s low this Friday, along with the purple trendline. This could trigger a sharper correction in the weekly chart. The question is, would be a Price Correction, when the index drops to hit a previous support, or a Time Correction, when the index moves sideways, erratically, waiting for the 21 ema to catch it?

We’ll have our answers soon, and I hope this analysis helped you! Remember to follow me to keep in touch with my daily updates, and please, support this idea if you did read this far!

Thank you very much!