SPX ends the day indecisive
S&P 500 Index (SPX) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, SPX ended Monday at 3360.47 edging higher $9.19 (0.27%). Today's close at 3360.47 marks the highest recorded closing price since February 20th. Trading up to $20.60 lower after the open, the index managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SPX as at Aug 10, 2020):
Monday's trading range has been $27.85 (0.83%), that's slightly below the last trading month's daily average range of $33.59. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SPX.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on July 31st, SPX actually gained 0.72% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 3393.52, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 453 times, SPX closed higher 55.85% 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 65.56% with an average market move of 0.40%.
With three out of the other five Major World Indices closing higher today, the ones that stand out on the positive side are DJIA gaining 1.3% and FTSE closing 0.31% higher. On the flipside the worst performers have been HSI closing -0.63% lower and NDX losing -0.49%. Read more