SPX dominated by bulls lifting the market higher throughout the day
S&P 500 Index (SPX) Technical Analysis Report for May 21, 2019 | by Techniquant Editorial Team
SPX ended Tuesday at 2864.36 gaining $24.13 (0.85%). The bulls were in full control today, moving the market higher throughout the whole session.
Daily Candlestick Chart (SPX as at May 21, 2019):
Tuesday's trading range has been $14.86 (0.52%), that's far below the last trading month's daily average range of $30.39. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SPX.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on May 16th, SPX actually lost -0.58% on the following trading day.
Prices are trading close to the key technical resistance level at 2891.31 (R1).
Though the stock index is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 2892.15 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 166 times, SPX closed higher 56.63% 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 66.27% with an average market move of 0.53%.
With four out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NDX gaining 1.01% and DAX closing 0.85% higher. On the flipside the worst performers have been HSI closing -0.47% lower and NKY losing -0.14%. Read more