SPX closes higher for the 2nd day in a row


S&P 500 Index (SPX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team

Highlights

SPX pushes through key technical resistance level
SPX dominated by bulls lifting the market higher throughout the day
SPX fails to close above 20-day moving average
SPX closes higher for the 2nd day in a row
SPX pushes through Monday's high

Overview

Moving higher for the 2nd day in a row, SPX ended the month 1.84% higher at 3100.29 after gaining $47.05 (1.54%) today. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 3053.89, the stock index confirmed its breakout through the prior session high after trading up to $57.62 above it intraday.

Daily Candlestick Chart (SPX as at Jun 30, 2020):

Daily technical analysis candlestick chart for S&P 500 Index (SPX) as at Jun 30, 2020

Tuesday's trading range has been $63.68 (2.09%), that's slightly above the last trading month's daily average range of $58.99. 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 slightly lower than usual for SPX.

One bullish candlestick pattern matches today's price action, the White Candle.

Buyers managed to take out the key technical resistance level at 3079.39 (now S1), which is likely to act as support going forward. After spiking up to 3111.51 during the day, the market found resistance at the 20-day moving average at 3108.30. The last time this happened on April 3rd, SPX actually gained 7.03% on the following trading day.

S&P 500 shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.

Buying might speed up should prices move above the nearby swing high at 3154.90 where further buy stops could get activated.

Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 349 times, SPX closed higher 59.89% 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 64.18% with an average market move of 0.39%.

With five out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NDX gaining 1.96% and NKY closing 1.33% higher. On the flipside the worst performer has been FTSE closing -0.9% lower. Read more


Market Conditions for SPX as at Jun 30, 2020

Loading Market Conditions for SPX (S&P 500 Index)...
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