SPX closes within previous day's range
S&P 500 Index (SPX) Technical Analysis Report for Oct 20, 2020 | by Techniquant Editorial Team
SPX finished Tuesday at 3443.12 gaining $16.20 (0.47%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SPX as at Oct 20, 2020):
Tuesday's trading range has been $41.28 (1.2%), that's slightly below the last trading month's daily average range of $48.67. 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.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. After moving lower in the prior session, the index managed to close higher but below the previous day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on June 29th, SPX gained 1.54% on the following trading day.
Prices are trading close to the key technical support level at 3431.56 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 3419.93 where further sell stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 49 times, SPX closed higher 57.14% 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 67.35% with an average market move of 0.83%.
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 0.4% and NDX closing 0.37% higher. On the flipside the worst performers have been DAX closing -0.92% lower and NKY losing -0.44%. Read more