$SPX - No reason to expect a bounce

SmartReversals
10-02

$S&P 500(.SPX)$ - As highlighted last week, the separation from the higher Bollinger band in combination with overbought oscillator has brought declines to the 20DMA at the very least. Today we have a bearish crossover and the 5DMA was clearly lost.

There is no reason to expect a bounce just yet, the oscillator should complete its bearish move, and as mentioned yesterday, the 2H chart had bearish clues that demanded caution.

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SPX - 2 Hours Chart:

The close yesterday did not match with the recent exhausted price action. The higher Bollinger Band was breached as zoomed in yesterday.

Short timeframes are useful to find false breakouts, as indicated yesterday in the zoomed chart.

$NASDAQ 100(NDX)$ and $DJIA(.DJI)$ were signaling pullbacks.

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  • Apdo77
    ·10-02
    I think those institution funds take out money using Middle East escalation and use these money to join the party in China!!
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