SP500 is standard & poor 500, which comprises of the index of 500 companies listed on the stock exchange.

Indices are either swing trades or long term investments. For swing trades, we will analyze H4.

- Market structure: Market structure of SP 500 is super bullish on all time frames. H4 is tapping its previous high from where we anticipate a corrective move towards $4320. Buying right now at the resistance is risky and we may face drawdown. Therefore, we need to patiently wait for the market to come to our level so we position ourselves in buys. Right now market just broke the resistance at 4360 and is continuing to move up. We will wait for a slight retracement to take a long position.

- Trendline: Earlier, a descending trendline, also known as trendline breakout buys, had taken place on the pair. The validation of candles opening and closing above the trendline has been verified as well. Secondly, SP500 is running within an ascending trendline. The resistance trendline touch may halt the bullish pressure and make price to retrace.

- Retracement: The retracement level of 75-78.6% is in confluence with the support level of the swing, where we plan our long position. This region is at 4320-4330

- EMA's: Both EMA’s are below the current market prices, reflecting a bullish bias on SP500. At the support level of $4320, we may have an additional confirmation for EMA 200 being retested after the break. Both EMA’s have not been tested after the breakout.

- RSI/CCI: RSI is at 64 level and CCI at 160 level respectively. RSI is 6 levels below its overbought region of 75. CCI is already in its overbought region. After entering the overbought zone, SP500 may neutralize its bullish pressure, hence forming a bearish corrective leg. At the support level, we will see what the 

When the corrective move has halted to its bearish pressure, only then we will see where to go LONG on SP 500.

S&P 500 still super bullish

Aug 06 2021

1