SPX closes lower for the 3rd day in a row
S&P 500 Index (SPX) Technical Analysis Report for Oct 15, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, SPX finished Thursday at 3483.34 edging lower $5.33 (-0.15%). 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 Oct 15, 2020):
Thursday's trading range has been $48.19 (1.4%), that's slightly below the last trading month's daily average range of $49.50. Weekly volatility is also lower, being below 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 Monday, SPX actually lost -0.63% 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 3588.11, upside momentum might speed up should the index be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 834 times, SPX closed higher 53.84% 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 65.35% with an average market move of 0.37%.
With six out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are DAX losing -2.49% and HSI closing -2.06% lower. None of the markets managed to end the day in the green. Read more