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SPX 500 continues bullish US Indices trend

SPX 500 continues bullish US Indices trend

By Chloe Edwards, Trade With Precision

The US indices continue to outperform many of the other index markets, with the US NDAQ 100 still hitting all-time highs, having twice this month breached the previously unachieved 11,000 level. The SPX 500 is also performing strongly, and I am continuing to look for bullish trend trading opportunities on this index market, among others.

Looking at the daily chart of the US SPX 500 above, I can see that price has recently broken above the horizontal support/resistance level at 3,230 (shown in pink). The next obvious level of resistance could be the previous all-time high from February, at 3,396.99 (shown in red).

Looking more closely at this daily chart, I notice an uptrend in place, with higher highs and higher lows in price action. There is bullish moving average (MA) geometry, with the 10, 20, 50 and 200 EMAs lined up in the correct order and pointing in the direction of the up trend.The MACD and RSI indicators are trending higher in a bullish fashion showing convergence with price, which could confirm the trend momentum to the upside.

On this timeframe, I will be awaiting a pullback down to the buy zone around the 10 and 20 EMAs, which could coincide with the potential support level at 3230, before looking for a small bullish candle to print in this area for a potential long opportunity.

The target I currently have in mind is around 3,390, just shy of the aforementioned all-time high. I will also look to the lower timeframes to find potential trading opportunities, as this may offer the benefit of finding a higher reward to risk opportunity than trading on the daily timeframe, and/or an earlier entry.

On the four-hourly chart above, I can see an uptrend in place, with price action forming higher highs and higher lows, and the 10, 20, 50 and 200 MAs lined up and showing good bullish geometry. The MACD and RSI indicators are both now converging with price, suggesting that there may be further momentum to the upside.

The combination of this price action and the indicators suggests to me the potential for possible long trading opportunities on this timeframe. There has been a pullback into the area around the 10 and 20 MAs, and a mid-sized bullish candle has formed around this area, giving me a potential long opportunity. Again, the target I have in mind is the aforementioned level of 3,390.

Stay safe and healthy, and happy trading!

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