SPX finds buyers again around 2877.05
S&P 500 Index (SPX) Technical Analysis Report for Aug 13, 2019 | by Techniquant Editorial Team
SPX ended Tuesday at 2926.32 gaining $43.62 (1.51%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 2907.58, the market confirmed its breakout through the prior session high after trading up to $35.73 above it intraday.
Daily Candlestick Chart (SPX as at Aug 13, 2019):
Tuesday's trading range has been $66.26 (2.3%), that's far above the last trading month's daily average range of $35.58. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SPX.
Despite a weak opening the S&P managed to close above the previous day's open and close, forming a bullish Engulfing Candle. The last time this candlestick pattern showed up on August 7th, SPX gained 1.88% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock index managed to close back above the 100-day moving average at 2905.36. After spiking up to 2943.31 during the day, S&P 500 found resistance at the 50-day moving average at 2942.70. After having been unable to move lower than 2873.14 in the prior session, the index found buyers again around the same price level today at 2877.05.
Though SPX is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 67 times, SPX closed higher 62.69% 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 61.19% with an average market move of 0.50%.
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 2.2% and DJIA closing 1.48% higher. On the flipside the worst performers have been HSI closing -2.1% lower and NKY losing -1.11%. Read more