SP500 – Daily Analysis
Another intriguing closure by SPY today—was it the start of a reversal or just a spooky false alarm?
In this update, we’ll dig into what shifted beneath the surface and what to watch next. Something subtle may have just tipped the market’s hand.
CANDLES
SPX and other major indices formed Bearish Engulfing candles today—a signal that deserves attention. However, when viewed in the context of the preceding candles, the message becomes more nuanced. The multi-candle formations had the potential to deliver a much stronger bearish statement, but that momentum was pulled back in the final minutes of trading.
The market continues to show remarkable resilience. To confirm a meaningful top, we’d need a bearish signal on the larger timeframes—something that hasn’t yet materialized. Trends across the board remain bullish. At this stage, the odds are neutral, and we may need another 2–3 days for a clear directional signal.
As of now, the monthly chart is still tracking for a bullish close.
Elliott Waves
ES may have formed another bullish flag over Monday and Tuesday. If this setup confirms, it could lead to a targeted move toward the highlighted area on the chart below. The $6535 level aligns well with the mid-term target we’ve been tracking for several weeks. It’s also worth noting that the next wave up could unfold as a diagonal, adding a layer of nuance to the structure.
SUMMARY
The S&P 500 is neutral in the short term and remains bullish across the mid- and long-term timeframes. Trends and technicals continue to support the broader upward trajectory.
SWING ROOM
As of the July 24 close, the Swing Room remained LONG on SPY. It’s been long since June 16 and had gained about 6.5% unleveraged.
All Swing Room trades are recorded here once they complete:
https://investingangles.com/live-trade/
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Happy Trading!
