SPX finds buyers again around 2815.08
S&P 500 Index (SPX) Technical Analysis Report for May 15, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SPX ended Wednesday at 2850.96 gaining $16.55 (0.58%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SPX as at May 15, 2019):
Wednesday's trading range has been $43.60 (1.55%), that's far above the last trading month's daily average range of $29.14. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SPX. Prices continued to consolidate within a tight trading range between 2801.43 and 2858.68 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on May 10th, SPX actually lost -2.41% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 2852.42 (R1), the market closed below it after spiking up to 2858.68 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move lower than 2820.12 in the previous session, the stock index found buyers again around the same price level today at 2815.08.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 2903.07.
Although the S&P is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 401 times, SPX closed higher 58.10% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.84% with an average market move of 0.38%.
With six out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NDX gaining 1.37% and DAX closing 0.9% higher. None of the markets ended the day in the red. Read more