SPX finds buyers at key support level
S&P 500 Index (SPX) Technical Analysis Report for May 23, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SPX ended Thursday at 2822.24 losing $34.03 (-1.19%).
Daily Candlestick Chart (SPX as at May 23, 2019):
Thursday's trading range has been $31.21 (1.1%), that's slightly above the last trading month's daily average range of $31.11. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SPX.
After trading down to 2805.49 earlier during the day, S&P 500 bounced off the key technical support level at 2816.88 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on May 15th, SPX gained 0.89% on the following trading day.
Though the stock index is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
As prices are trading close to May's low at 2801.43, downside momentum might speed up should the S&P mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 360 times, SPX closed higher 60.83% 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 66.94% with an average market move of 0.60%.
With six out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are DAX losing -1.78% and HSI closing -1.58% lower. None of the markets managed to end the day in the green. Read more