SPX closes above its opening price after recovering from early selling pressure
S&P 500 Index (SPX) Technical Analysis Report for Nov 08, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SPX ended the week 0.85% higher at 3093.08 after gaining $7.90 (0.26%) today. Today's close at 3093.08 marks the highest recorded closing price ever. Trading up to $7.67 lower after the open, the stock index managed to reverse during the session as bulls took control ending the day above its opening price. 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 Nov 08, 2019):
Friday's trading range has been $19.51 (0.63%), that's slightly above the last trading month's daily average range of $16.95. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SPX.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 3085.20 (now S1), which is likely to act as support going forward. The last time this happened on October 25th, SPX gained 0.56% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 3097.77 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for S&P 500. Out of 64 times, SPX closed higher 56.25% 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 67.19% with an average market move of 0.10%.
With three of the other Major World Indices closing higher and three closing lower today, the winners of the day are NDX surging 0.44% and NKY gaining 0.26%. On the flipside the worst performers have been HSI closing -0.7% lower and FTSE losing -0.63%. Read more