SPX Weekly EMA10 Analysis

22 февр. 2022 г.

You might be aware that I use EMA10 to measure the short-term potential of a chart.

I started using it with Crypto but so far it has been proven effective across TradFi as well.

Above EMA10 = bullish potential short-term.
Below EMA10 = bearish potential short-term.

Here we give a second look at the SPX Weekly chart.

In short, for the last bullish wave that started after March's 2020 low, we never get more than 2 full candle close below EMA10... Each time prices go below this level, a recovery quickly take place.

There is one exception though...

Let's look at the chart:

• In Sept. & Oct. 2020 we had a drop below EMA10 followed by quick recovery.
  
• In Sept. 2021 we had a drop below EMA10 followed by quick recovery.
  
• Now, after Mid-January 2022, the SPX moved below EMA10 but was rejected when it tried to quickly move back up.

Now we have 5 full candles below this level and the bearish signals starting to pile on...

This same analysis is also true before the March 2020 crash.

When the SPX failed to recover quickly above EMA10... It meant that the market lost its based and it was ready to drop.

See this one... The SPX lost a 20+ years support level.

Bitcoin vs Cardano, Ethereum, Solana, SPX, NDX & DJI + Altcoins

Thanks a lot for reading.


Namaste.