Monday’s Charting Of S&P 500

The market has an extremely high chance of having hit capitulation, although I do not like how the day formed. I wanted to see an extremely sharp decline, and now a leveled decline that just drifts throughout the day. Nonetheless, buyers did swoop in in the last hour of the day, taking the market to a higher low, which was my signal for long entry.

In the 1-day chart below, the blue circle marks the 5-min bar where the market penetrated it’s previous low. The act of penetrating resistance in full-force gave signal to other players to go long. The red lines are additional resistance areas we penetrated, but also serve as tomorrow’s support.

S&P 500 (SPX) - 1 day

In a 3-day chart below, we formed a bullish wedge which indeed broke out to the upside. Purple lines mark tomorrow’s support, if necessary.

S&P 500 (SPX) - 3 day

In a 5-day chart below, we see the same as above, but we also see longer-term resistance up ahead. This rally may last for 2 days or 2 weeks, who knows, but it’s important to make note of all resistance areas ahead of time.

S&P 500 (SPX) - 5 day

Posted in Categories: Contributor, External Research, Stocks, USA.

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