S&P500 Triple Top at 61.8% Fib Resistance, And A Gap
The S&P 500(SPX) closed today at $2,922.94 for a -$30(-1.05%) loss on the trading session. Price is also once again hitting 61.8% Fibonacci resistance and setting up for what could potentially be a triple top pattern. The 61.8% Fib level has acted as resistance since late April while each pullback has held at the 50% Fib making this the current consolidation range as traders attempt to figure out if Federal Reserve money printing is enough juice to override the overwhelmingly bearish economy.
Today’s price candle closed green which indicates that there is bullish momentum behind price, but the candle also closed as an inside candle which could be a sign of a reversal head. An inside candle is when the current candle’s high and low is completely inside the range of the previous candle’s high and low range, which indicates that traders were unable to move price higher or lower than yesterdays levels and are most likely indecisive as to which direction to go. There was also a gap created in the chart from Friday’s close and Monday’s open, and gaps tend to be filled so going forward we might be looking at a gap-fill this week with price falling down near the $2870 level or roughly -1.7% from today’s closing price. A gap fill would also take price back down near the 50% Fibonacci retracement level which means we’d get to see if that level will continue to act as price support.
The Relative Strength Index(RSI) shows the green RSI line trending just above the purple signal line which indicates short-term bullish momentum is behind price. The green RSI line and purple signal line are both above the 50 level which is the midpoint of the total RSI range. In general, an RSI reading above the 50 level indicates overall bullish momentum behind price while a reading below 50 indicates overall bearish momentum behind price.
The Price Percent Oscillator(PPO) shows the green PPO overlapping the purple signal line which indicates that short-term momentum has turned neutral. In general, you want to see the green PPO line rising above the purple signal line as an indication that there is bullish momentum behind price. Both lines remain above the 0 level though which indicates that price still has bullish momentum in the intermediate-term. A PPO reading above 0 indicates intermediate-term bullish momentum while a reading below 0 indicates intermediate-term bearish momentum.
The Average Directional Movement Indicator(ADX) shows the green directional line above the purple directional line which indicates that there is a short-term positive trend in price. The histogram in the background at very low levels after a recent decline which indicates that the overall strength in trend has weakened. In general, you want to see the histogram rising as a sign of trend strength; if the green line is above the purple line and the histogram is rising you have increasing bull trend strength. If the purple line is above the green line and the histogram is rising you have increasing bear trend strength.
Overall price remains neutral here as price continues to find resistance at the 61.8% Fibonacci level. The lower momentum and trend indicators still show a slight bullish bias, but with resistance at the golden Fib level and a lower gap in the chart the likely move going forward will be a pullback and re-test of the 50% Fib level while closing the gap. In order for me to turn bullish on the S&P500 I would like to see price push above the 61.8% level; to turn bearish I would need to see a move below the 50% Fib level and for the lower indicators to turn bearish as well.
Today’s price candle closed green which indicates that there is bullish momentum behind price, but the candle also closed as an inside candle which could be a sign of a reversal head. An inside candle is when the current candle’s high and low is completely inside the range of the previous candle’s high and low range, which indicates that traders were unable to move price higher or lower than yesterdays levels and are most likely indecisive as to which direction to go. There was also a gap created in the chart from Friday’s close and Monday’s open, and gaps tend to be filled so going forward we might be looking at a gap-fill this week with price falling down near the $2870 level or roughly -1.7% from today’s closing price. A gap fill would also take price back down near the 50% Fibonacci retracement level which means we’d get to see if that level will continue to act as price support.
The Relative Strength Index(RSI) shows the green RSI line trending just above the purple signal line which indicates short-term bullish momentum is behind price. The green RSI line and purple signal line are both above the 50 level which is the midpoint of the total RSI range. In general, an RSI reading above the 50 level indicates overall bullish momentum behind price while a reading below 50 indicates overall bearish momentum behind price.
The Price Percent Oscillator(PPO) shows the green PPO overlapping the purple signal line which indicates that short-term momentum has turned neutral. In general, you want to see the green PPO line rising above the purple signal line as an indication that there is bullish momentum behind price. Both lines remain above the 0 level though which indicates that price still has bullish momentum in the intermediate-term. A PPO reading above 0 indicates intermediate-term bullish momentum while a reading below 0 indicates intermediate-term bearish momentum.
The Average Directional Movement Indicator(ADX) shows the green directional line above the purple directional line which indicates that there is a short-term positive trend in price. The histogram in the background at very low levels after a recent decline which indicates that the overall strength in trend has weakened. In general, you want to see the histogram rising as a sign of trend strength; if the green line is above the purple line and the histogram is rising you have increasing bull trend strength. If the purple line is above the green line and the histogram is rising you have increasing bear trend strength.
Overall price remains neutral here as price continues to find resistance at the 61.8% Fibonacci level. The lower momentum and trend indicators still show a slight bullish bias, but with resistance at the golden Fib level and a lower gap in the chart the likely move going forward will be a pullback and re-test of the 50% Fib level while closing the gap. In order for me to turn bullish on the S&P500 I would like to see price push above the 61.8% level; to turn bearish I would need to see a move below the 50% Fib level and for the lower indicators to turn bearish as well.
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