SPX runs into sellers again around 3460.53
S&P 500 Index (SPX) Technical Analysis Report for Oct 22, 2020 | by Techniquant Editorial Team
SPX ended Thursday at 3453.49 gaining $17.93 (0.52%). Trading up to $23.16 lower after the open, the index managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 2nd, SPX gained 1.80% on the following trading day. 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 22, 2020):
Thursday's trading range has been $45.19 (1.31%), that's slightly above the last trading month's daily average range of $44.52. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SPX.
After trading as low as 3415.34 during the day, the S&P found support at the 20-day moving average at 3422.59. After having been unable to move above 3464.86 in the previous session, S&P 500 ran into sellers again around the same price level today, missing to move higher than 3460.53.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for S&P 500. Out of 63 times, SPX closed higher 65.08% 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 66.67% with an average market move of 0.74%.
With three of the other Major World Indices closing higher and three closing lower today, the winners of the day are DJIA surging 0.54% and FTSE gaining 0.16%. On the flipside the worst performers have been NKY closing -0.7% lower and DAX losing -0.12%. Read more