Why a SPX technical bounce was possible? Second reason!
The second reason why a bounce was a possibility for S $S&P 500(.SPX)$ in the middle of the bearish impulse, was the oversold McClellan Oscillator, which as posted on Wednesday night, it had crossed 70 and a bounce was expected "soon".
The oscillator crossed -70, which is a notable inflection point as it is highlighted below the red horizontal line.
Is this an absolute bottom signal?
No, it works well to time bounces, but now it's time for price action to show continuation, since this oscillator can present divergences with price, that means higher lows in the oscillator and lower lows in price, as it happened in Q3 2023.
$SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $E-mini S&P 500 - main 2406(ESmain)$ $E-mini Nasdaq 100 - main 2406(NQmain)$
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There are three reasons, this is the first one:
$DJIA(.DJI)$ : Price clashed with the lower Bollinger Band while Stochastic were curling up.
That simple, the index without $NVIDIA Corp(NVDA)$ was bottoming relative to the bands and fast oscillators.
On the other hand, a bearish MACD crossover is a halo to consider in the indexes, price action has to demonstrate its bullish direction next week. Daily volume looks promising on that bullish daily candle. $GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$
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Like and repost for the third.
https://x.com/SmartReversals/status/1796901210626175258
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