SPX pops to highest close ever
S&P 500 Index (SPX) Technical Analysis Report for Jul 11, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SPX finished Thursday at 2999.91 gaining $6.84 (0.23%). Today's close at 2999.91 marks the highest recorded closing price ever. Trading up to $10.82 lower after the open, the S&P managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SPX as at Jul 11, 2019):
Thursday's trading range has been $13.53 (0.45%), that's below the last trading month's daily average range of $18.11. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SPX.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on June 17th, SPX gained 0.97% on the following trading day.
After trading down to 2988.80 earlier during the day, the stock index bounced off the key technical support level at 2995.84 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move above 3002.98 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 3002.33.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 3002.98 where further buy stops could get triggered.
Among the 10 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 365 times, SPX closed higher 61.10% 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 67.67% with an average market move of 0.63%.
With three of the other Major World Indices closing higher and three closing lower today, the winners of the day are DJIA surging 0.85% and HSI gaining 0.81%. On the flipside the worst performers have been DAX closing -0.33% lower and FTSE losing -0.28%. Read more