SPX runs into sellers again around 3186.82
S&P 500 Index (SPX) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
SPX ended the week 1.76% higher at 3185.04 after gaining $32.99 (1.05%) today. Today's close at 3185.04 marks the highest recorded closing price since June 10th. Closing above Thursday's high at 3179.78, S&P 500 confirmed its breakout through the prior session high after trading up to $7.04 above it intraday.
Daily Candlestick Chart (SPX as at Jul 10, 2020):
Friday's trading range has been $50.60 (1.61%), that's slightly below the last trading month's daily average range of $55.79. Weekly volatility is also lower, being 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. The last time a White Candle showed up on Monday, SPX actually lost -1.08% on the following trading day.
Prices are trading close to the key technical resistance level at 3223.27 (R1). After having been unable to move above 3179.78 in the previous session, the stock index ran into sellers again around the same price level today, missing to move higher than 3186.82.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further buying could move prices higher should the market test June's nearby high at 3233.13.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for S&P 500. Out of 565 times, SPX closed higher 56.81% 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 63.72% 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 1.44% and DAX closing 1.15% higher. On the flipside the worst performers have been HSI closing -1.84% lower and NKY losing -1.06%. Read more