SPX pushes through Wednesday's high
S&P 500 Index (SPX) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, SPX ended Thursday at 2630.07 gaining $154.51 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 2571.42, the index confirmed its breakout through the prior session high after trading up to $65.59 above it intraday.
Daily Candlestick Chart (SPX as at Mar 26, 2020):
Thursday's trading range has been $136.29 (5.45%), that's slightly below the last trading month's daily average range of $141.62. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for SPX.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, SPX gained 1.15% on the following trading day.
Prices are trading close to the key technical resistance level at 2711.33 (R1).
Although the S&P is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 753 times, SPX closed higher 53.25% 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 64.67% with an average market move of 0.23%.
With four out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are DJIA gaining 6.38% and NDX closing 5.72% higher. On the flipside the worst performers have been NKY closing -4.51% lower and HSI losing -0.74%. Read more