SPX Daily Chart: A technical bounce is normal after a bearish engulfing candle

SmartReversals
05-25

$S&P 500(.SPX)$ A technical bounce like the one seen today is normal after a bearish engulfing candle.

With or without green continuation on Tuesday, further decline is expected, there are recent references highlighted in the chart.

A bearish MACD cross is around the corner, that would validate the thesis of a healthy pullback coming. If it happens, a visit to the 20 and 50DMA zone is expected.

The Bullish crossover in 20 and 50 DMAs looks like the welcome sign for Summer season. Suggesting that a healthy pullback would be a buying opportunity.

$SPDR S&P 500 ETF Trust(SPY)$ $E-mini S&P 500 - main 2406(ESmain)$ $E-mini Nasdaq 100 - main 2406(NQmain)$

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Comments

  • JohnnyYoung
    05-25
    JohnnyYoung
    I agree that a technical bounce is common after a bearish engulfing candle.
  • NinaEmmie
    05-25
    NinaEmmie
    The recent bullish crossover in DMAs suggests a buying opportunity.
  • AmyMacaulay
    05-25
    AmyMacaulay
    A bounce was expected after the bearish engulfing candle.
  • KSR
    05-26
    KSR
    👍
  • rinaldi kosasih
    05-25
    rinaldi kosasih
    Great article, would you like to share it?
  • Syifa yes
    05-25
    Syifa yes
    Great article, would you like to share it?
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