SPX finds buyers again around 2975.86
S&P 500 Index (SPX) Technical Analysis Report for Jul 19, 2019 | by Techniquant Editorial Team
SPX finished the week -1.23% lower at 2976.61 after losing $18.50 (-0.62%) today. The bears were in full control today, moving the market lower 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 Jul 19, 2019):
Friday's trading range has been $30.16 (1.0%), that's far above the last trading month's daily average range of $18.16. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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. The last time a Black Candle showed up on Wednesday, SPX actually gained 0.36% on the following trading day.
After having been unable to move lower than 2973.09 in the previous session, the market found buyers again around the same price level today at 2975.86.
Though the 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.
Selling could accelerate should prices move below the close-by swing low at 2973.09 where further sell stops might get activated. As prices are trading close to July's low at 2952.22, downside momentum could speed up should the stock index mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 251 times, SPX closed higher 60.16% 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 65.74% with an average market move of 0.81%.
With four out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NKY gaining 2.0% and HSI closing 1.07% higher. On the flipside the worst performers have been NDX closing -0.88% lower and DJIA losing -0.25%. Read more