$SPX ( S&P500 ) as of March 03, 2021
Technical Overview of S&P500(SPX)
Good Evening, Everyone!
SPX ( S&P500 ) as of March 03, 2021: SPX decreased by 50.57 (-1.31%) points.
From the very inception, bears took control, led the market until the closing bell, and dragged down the index by 50.57 points. But still, SPX is within the consolidation range we marked yesterday from 3928.65-3789.54. SPX closed just above the dynamic support of EMA50 at 3809.20. The following support is the last swing low (HL) at 3789.54, breaking that will make a lower low (LL) and confirm a midterm downtrend. If EMA50 and last swing low can not hold the SPX, we got the following support from AVWAP at 3768.31 and 3719.18. But if it keeps on consolidating, the first resistance will be from EMA20 at 3866.47
The 2H chart made a lower high(LH) but not yet made a lower low(LL), so SPX is also consolidating in the lower time frame. A rounded top pattern is forming in the 2H chart, which is a bearish pattern for sure. We will follow and discuss it in the coming days as the pattern is not confirmed yet.
It seems SPX will consolidate between the range before making a lower low. We will be more cautious in trading as the odds of success are reduced significantly in down or sideway markets, and false breakout and pattern failure more likely now. Sometimes no trading is the best trading.
- by Southwind
Good Evening, Everyone!
SPX ( S&P500 ) as of March 03, 2021: SPX decreased by 50.57 (-1.31%) points.From the very inception, bears took control, led the market until the closing bell, and dragged down the index by 50.57 points. But still, SPX is within the consolidation range we marked yesterday from 3928.65-3789.54. SPX closed just above the dynamic support of EMA50 at 3809.20. The following support is the last swing low (HL) at 3789.54, breaking that will make a lower low (LL) and confirm a midterm downtrend. If EMA50 and last swing low can not hold the SPX, we got the following support from AVWAP at 3768.31 and 3719.18. But if it keeps on consolidating, the first resistance will be from EMA20 at 3866.47
The 2H chart made a lower high(LH) but not yet made a lower low(LL), so SPX is also consolidating in the lower time frame. A rounded top pattern is forming in the 2H chart, which is a bearish pattern for sure. We will follow and discuss it in the coming days as the pattern is not confirmed yet.
It seems SPX will consolidate between the range before making a lower low. We will be more cautious in trading as the odds of success are reduced significantly in down or sideway markets, and false breakout and pattern failure more likely now. Sometimes no trading is the best trading.
- by Southwind
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