SPX dominated by bulls lifting the market higher throughout the day

S&P 500 Index (SPX) Technical Analysis Report for Oct 12, 2020 | by Techniquant Editorial Team


SPX rises to highest close since September 2nd
SPX dominated by bulls lifting the market higher throughout the day
SPX closes higher for the 4th day in a row


Moving higher for the 4th day in a row, SPX ended Monday at 3534.22 surging $57.08 (1.64%). Today's close at 3534.22 marks the highest recorded closing price since September 2nd. The bulls were in full control today, moving the market higher throughout the whole session.

Daily Candlestick Chart (SPX as at Oct 12, 2020):

Daily technical analysis candlestick chart for S&P 500 Index (SPX) as at Oct 12, 2020

Monday's trading range has been $50.24 (1.44%), that's slightly above the last trading month's daily average range of $49.12. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly 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 October 9th, SPX gained 1.64% on the following trading day.

With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 3363.41.

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 3588.11, upside momentum could accelerate should the S&P be able to break out to new highs for the year.

Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 775 times, SPX closed higher 53.16% 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 65.81% with an average market move of 0.45%.

With four out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NDX gaining 3.09% and HSI closing 2.2% higher. On the flipside the worst performers have been NKY closing -0.26% lower and FTSE losing -0.25%. Read more

Market Conditions for SPX as at Oct 12, 2020

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