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Let's take a look at the bigger pictures of the S&P 500 Cash Index with some various tools we use at The Private Banker to better understand the overall market story.
We begin with a plain monthly chart:
What can we observe on this monthly chart? Firstly last month's low got taken out from this month and we see a somewhat of a balance bracket since the market found support. So the one time framing higher on the monthly chart has a end?
Now we zoom to the weekly chart:
We can cleary spot a reaction at the mean of this finer placed price channel. The current week took out last week's high and ended the one time framing lower that occured since several weeks.
On the daily chart we are actually one time framing higher. The market opened somewhat far away form the 5 EMA so, a rotation back to this week's average should be high. Also we see resistance at the longer term directional filter 50 EMA.
With a look on this year's VWAP we can identify a reaction at the developing value low which is confluent with the weekly price channel mean. The market moved stright to the other side of value. The likelihood of a rotational behavior in this year's developing value should be high.
On the weekly VWAP the market trading above last weeks value area. Also we see a good imbalanced market above the developing value but today we got back into value again. Test of DVAL could be probable in this case.
Anyway, this was a quick market analysis recap for the S&P 500 Cash Index. For a more indepth understanding we recommend to join our Trading Community with a seperated premium trading education section. Also, you can take look into our Trading Glossary to better understand the terms we use in our tweets and reports.
We hope you have a great week in the markets!
