SPX breaks below Monday's low
S&P 500 Index (SPX) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
SPX finished Tuesday at 3004.04 losing $10.26 (-0.34%). Closing below Monday's low at 3008.77, the stock index confirmed its breakout through the prior session low after trading up to $7.62 below it intraday.
Daily Candlestick Chart (SPX as at Jul 16, 2019):
Tuesday's trading range has been $13.87 (0.46%), that's below the last trading month's daily average range of $17.95. 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.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 3001.15 earlier during the day, S&P 500 bounced off the key technical support level at 3002.98 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on July 11th, SPX gained 0.46% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 3017.80 where further buy stops might get activated.
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 366 times, SPX closed higher 61.20% 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 67.49% 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 FTSE surging 0.6% and DAX gaining 0.35%. On the flipside the worst performers have been NKY closing -0.69% lower and NDX losing -0.5%. Read more