SPX closes above its opening price after recovering from early selling pressure
S&P 500 Index (SPX) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
SPX finished Monday at 3053.24 gaining $44.19 (1.47%). Trading up to $18.85 lower after the open, the market 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 Jun 29, 2020):
Monday's trading range has been $54.15 (1.79%), that's slightly below the last trading month's daily average range of $57.28. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SPX.
After moving lower in the previous session, the S&P managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
The stock index managed to close back above the 200-day moving average at 3021.16. Prices are trading close to the key technical resistance level at 3079.39 (R1). After having been unable to move lower than 3004.63 in the previous session, S&P 500 found buyers again around the same price level today at 2999.74. The last time this happened on June 25th, SPX actually lost -2.42% on the following trading day.
The index shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to June's low at 2965.66, downside momentum might speed up should SPX mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 417 times, SPX closed higher 58.99% 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 64.51% with an average market move of 0.43%.
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 2.32% and DAX closing 1.18% higher. On the flipside the worst performers have been NKY closing -2.3% lower and HSI losing -1.01%. Read more