Technical Analysis on .SPX& NAD
Hello everyone! Today I want to share some technical analysis with you!
1.
4221-4241 GAP: $S&P 500(.SPX)$
(1) market has a great memory of the scar in the past, i.e., big gaps.
(2) a major breakaway gap during the rally phase at 4221-4241, now brings back a lot of painful memory for the market.
(3) it normally takes a couple of sessions to digest the pain.
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Nextm, Low is 4220--like I said, if SPX can turnaround at the lower edge of the formal gap (4221), then it has a chance to chop further in the zone. It did. The low is 4220, and now SPX aims at MA=200=4237 again. I think it has a chance to close above it today, waiting for $Microsoft(MSFT)$ & $Alphabet(GOOG)$ .
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Chopping, relentlessly. The purpose of the moves is to make sure the majority of traders are ill-positioned for the next major leg, either up or low. After defending 4220, SPX jumps back up both MA-200 and the Gap zone. Now, wait for the close to see the final score.
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Finally, Hanging in There:
(1) yes, closed above 4237, but not convincingly--moreover, the current candle formation is a bearish pennant, waiting for a breakout to the downside.
(2) now, the earnings are out, GOOG down, MSFT up, pretty much cancel each other out.
(3) need other catalyst.
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2.
THE TOUCH: $NASDAQ(.IXIC)$
(1) NDQ formed a perfect-looking downward wedge--or leading diagonal, with a potential 3rd touch of lower trendline near 14280.
(2) about 3.5% lower from current level--with AMZN & GOOG (12% weighting) earnings, it has the energy to do that. (3) also the MA[200] level
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From MasterPandaWu I have followed on X (Twitter) for some time and used info to make successful trades. Great he's here to share too