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FX.co ★ SPX weekly analysis.

SPX weekly analysis.

This week SPX tested the lower weekly channel boundaries and bounced strongly. Near the end of the week price has turned negative on a weekly basis but still inside the bullish channel. It is imperative for bulls to defend 4580.

SPX weekly analysis.

Blue lines- bullish channel

Black lines - Fibonacci retracement

The lower channel boundary provides the first level of support at 4580. Failure to stay above this level, could lead to a sharp decline towards the Autumn lows near 4300. If a major top is in the making, then our most probable pull back should be towards 3800.

SPX weekly analysis.

Green lines- bearish divergence

Blue lines -bullish channel

Black lines -Fibonacci retracements

SPX is still in bullish trend but the weekly RSI is warning bulls that the momentum is weakening. The 38% Fibonacci retracement of the entire rise from the Covid-19 lows in 2020 is at 3800 and it is a target justified and should not be ruled out. For now there is no top confirmation, but bulls need to be very cautious as a corrective pull back is more than justified. It would also be healthy for the market in order to pick up momentum for another bullish run.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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