$SPX: 20DMA Test Imminent

SmartReversals
01-25 07:16

$.SPX(.SPX)$ : 20DMA Test Imminent:

The gray squares mark previous occasions when price has tested that blue line. In the past, when the Bollinger Band has been breached and/or oscillators have been overbought, price has invariably moved to the 20DMA.

Both conditions are in today. Will this time be different like the green square? No, wait, that one also preceded a visit to the 20DMA.

$SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ(QQQ)$ $NASDAQ 100(NDX)$ $iShares Russell 2000 ETF(IWM)$

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Price action flipped the $6,083 resistance level to support: Anyway, recent moves above the Bollinger band have anticipated declines to the 20DMA at the very least as highlighted.

That same level is the line in the sand to validate a pullback. Shorting is risky given the recent momentum, and for long positions $6083 is useful as a reference to manage risk.

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