S / R Levels - Dec 16 - 20
The week closed in bearish mode, the central level was lost and narrow price action is usually followed by big moves (squeeze). Manage your risk using the support and resistance levels as reference.
The latest Weekly Compass raised signs of exhaustion: Volume was drying, breadth was deteriorating, and there are oscillators extremely overbought in long term timeframes. The signals are proving their worth.
Choppy price action with fake breakouts above the central level ($6074 for the SPX) is common in reversal weeks, so staying alert next week is key for bulls, and the Volatility Index builds on the warning thesis:
Opposite to price action in SPX, the VIX is showing signs of a reversal with a slow ascending move and most importantly, a bullish MACD crossover that usually precedes spikes in volatility. Both events are highlighted by green arrows.
All eyes to the 20DMA, which closed at 14.5:
Analyzing the inverse case, SPY sows an inverse MACD cross, suggesting a bearish move incoming, and the 20DMA is a very likely destination for the SP500 ETF next week.
The volume shelf may provide some strength to that moving average, anyway price action has to be assessed, premium subscribers know the conditions at a macro economic and technical level that elevate the relevance of any bearish signal.
There are good news!
As I have been mentioning, the Support and Resistance levels are coming in 2025 with more securities, so in case you trade or invest in other securities this edition becomes even more useful.
So the weekly levels that are below the paywall are more than 30 already!:
The securities that continue: SPX, NDX, DJI, SPY, QQQ, IWM, SMH, TLT, NVDA, META, MSFT, AMZN, GOOG, AAPL, TSLA, GLD, SLV, Bitcoin, and Ethereum.
The new securities (already here in the weekly levels!): DIA, NFLX, COST, MSTR, PLTR, AMD, TQQQ, SQQQ, UPRO, SPXS, UDOW, SDOW, URTY, and SRTY.
Seriously, secure your 2025 spot from now, explore what is below the paywall, there are good things for you:
WEEKLY LEVELS