SP500 – Daily Analysis
Those who dismissed our SPX call on July 15 watched from the sidelines as the market surged 130 points in a near-flawless rally—one of the cleanest and most rewarding moves in weeks. It unfolded exactly as we projected, delivering gains to those who stayed the course with the technical setup. Now, with fresh signals surfacing, it’s time to dive into the latest candle patterns, technical shifts, and chart structures to uncover where the next big opportunity may be taking shape.
CANDLES
Today’s candle closures for SPX and other major indices signal a need for caution. A pullback tomorrow is possible, but it’s still unclear whether it will be a brief pause or the start of a larger trend shift. SPX and NQ are in overbought territory, while Dow and Russell have just exited that zone and may have more room to move lower.
The upcoming weekly closure will be key. At this stage, SPX is trending toward a bullish weekly candle, and that outlook should hold unless a deeper pullback develops—something that could carry broader implications.
Meanwhile, ES futures printed a bullish continuation candle on the 10D frame—the seventh consecutive green candle. If the pattern continues, the next 10 days are likely to remain bullish, though concerns may begin to mount once the eighth green candle appears.
Elliott Waves
No changes to the mid-term chart—SPX has reached its target destination, and a pullback is now on the table.
On the short-term view, SPX has entered the flag target area. Based on Fibonacci extensions and supporting signals, the current wave aligns more closely with the red count. However, the potential proximity to the top of wave 5 in green remains a viable scenario. With no strong reversal signals present, the wave still has room to extend.
SUMMARY
The S&P 500 is bullish, closer to neutral short term and bullish across longer frames until we can see a clear reversal.
SWING ROOM
All Swing Room trades are recorded here once they complete:
https://investingangles.com/live-trade/
As of the July 21 close, the Swing Room remained LONG on SPY. It’s been long since June 16 and had gained about 5.5% unleveraged.
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Happy Trading!
