SPX technical analysis video highlights
- Bull Flag Formation on the daily timeframe: The S&P 500 Index exhibits a potential bull flag pattern (marked in pink on the above technical analysis video), This formation often signals a continuation of the existing trend, if price should breakout up, and it seems that it is holding and not selling at this juncton, suggesting possible upside.
- Four-hour Time Frame Analysis: The index recently attempted a breakout from the bull flag, briefly succeeding before retreating back into the channel. Price currently hovers near the upper edge of the bull flag, hinting at a possible breakout in the near future.
- Upward Price Channel: An additional upward channel (marked in yellow in the technical analysis video above) is observed. Price currently hovers around the center of this channel, effectively facing double resistance. However, the price appears to be holding steady. IMO, SPX wants to break out up soon. The shallow retracements and price action suggest a potential breakout, possibly as early as next week.
- Futures Market on Good Friday: The S&P 500 futures market (ES) will be partially open on Good Friday (till 08:00 AM CET), and although there is little action, the Asian and European sessions are open and influence the future marker, and may be providing potential hints regarding the index’s direction. A move toward 4135 or 4140 on Good Friday could signal further upward hints for Monday or Tuesday.
- Targeting 4200: A combination of these factors points toward a potential move to 4200, which also corresponds with the top of the range on higher time frames and the top of the yellowish channel.
- Risk Management: Traders should exercise caution and have appropriate stop-loss orders in place. A daily candle closing below the yellow channel could signal the need for reevaluation. Some traders may also monitor the 4070 level on the SPX as a key line in the sand. If a daily candle close below it, a bearish premise would replace the current bullish one.
S&P 500 emini futures chart also bullish
The 1 hour chart for ES is showing that price is still above the bull flag and the 20EMA. Had a big, strong rally since the touch point on the lower band and only a shallw retracement down, recently. A further upside is expected, IMHO.
S&P 500 emini futures 1 hour chart also bullish
Remember to trade at your own risk and return to ForexLive.com for additional perspectives and analysis on the S&P 500 Index.
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