SPX: New All Time High! So, what now?

7 ม.ค. 2021

Hello traders and investors! Let’s see how the SPX is doing today!

We have a new record high today, which is incredible. This bullish momentum was triggered when the index did this classic Piercing Line pattern near a support level (purple line), which we discussed about my last analysis (Jan 4, link below as usual).

Yesterday’s drop was quite unusual, but in the end, was just a pullback to the 21 ema, rather than an actual sell-off. Now the key point is the 3783, as if the index loses it, we may see a sharper pullback, but still, wouldn’t be anything too drastic, as the trend is incredibly strong here.

Now, the daily chart:



The volume is increasing, which is another good sign, and we are quite far from the 21 ema. Again, if the index loses the 3783 a pullback to the 21 ema/green line at 3726 would be natural.

So far, there are no pullback or reversal signs yet, and if SPX keeps above its supports, the bull trend will persist, until a clear reversal occurs, like Charles Dow would say (Dow Theory 6th tenet).

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Thank you very much.