- SPX and NASDAQ have shifted from bullish patterns of higher highs and higher lows to bearish trends of lower highs and lower lows. DXY, on the other hand, is experiencing a strong bullish momentum, potentially impacting the financial markets.
- Bitcoin has displayed a distinct pattern, trading inversely to traditional indices like SPX and NASDAQ. While SPX and NASDAQ faced declines, Bitcoin showed positive gains, highlighting its independence.
- Bitcoin’s technical indicators suggest the potential for an upcoming upward move. Short-term analysis reveals a structure of higher highs and higher lows, complemented by RSI signals.
SPX:
SPX closed the week at $4,327.79. This week, SPX was positive and ended with a gain of $19.3. According to the previous analysis, it was mentioned that SPX would make an upside move from $4,220, and everything unfolded as anticipated in the previous analysis.
At the daily level, SPX found support from the 200-day EMA and made an upward move, touching the 50-day EMA. Currently, at the daily level, SPX is facing resistance from the 50-day EMA.
SPX has strong support at $4,291, as it is backed by the 200-day EMA, a horizontal line, and an ascending trendline. It is expected that SPX will drop down to $4,290, followed by an upward move. In case this support level breaks, $4,220 will be crucial due to the presence of the 50-week EMA and horizontal trendline.
An important observation is that SPX has invalidated its previous trend of higher highs and higher lows, now entering a bearish trend characterized by lower highs and lower lows. So, if SPX breaks $4,220, the next support level will be around $4,167.
RSI is also forming lower highs and lower lows, indicating a hidden bearish divergence. This could play out in the future, leading to a drop in SPX prices.
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NASDAQ:
Like SPX, NASDAQ is also following a pattern of lower highs and lower lows, invalidating its previous bullish trend of higher highs and higher lows. NASDAQ is currently experiencing resistance from the upside. Moreover, overcoming the 50-day EMA is crucial to show bullish momentum in the coming days.
For NASDAQ to return to a bullish mode, it needs to surpass the $15,629 level, which will invalidate the bearish structure of lower highs and lower lows. Support for NASDAQ is found around $14,430, $14,170, and $13,700, marked by horizontal lines and the 200-day EMA.
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DXY:
DXY is in a very bullish momentum. As previously mentioned, DXY was expected to drop to 105.65 and then experience an upward move. DXY indeed followed this pattern, making a strong upward move. It broke through the resistance of the trendline and maintained its strength. Given the current momentum, it is expected that DXY will break the resistance at 106.87 in the next few days, potentially reaching 108. This may have negative implications for financial markets, leading to a sell-off in SPX and DXY.
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BTC:
In recent weeks, Bitcoin has been trading inversely to NASDAQ and SPX. While SPX and NASDAQ experienced a significant drop in September, Bitcoin performed positively, gaining about 4%. However, in October, so far, SPX and NASDAQ have outperformed Bitcoin. Nevertheless, considering the technical indicators for SPX, NASDAQ, and DXY, it is expected that a drop will occur in them. If this occurs, Bitcoin may see an upward movement.
An interesting point to note is that Bitcoin is following a structure of higher highs and higher lows in the shorter term, and the RSI is also indicating a potential upward move.
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Conclusion:
In conclusion, the analysis of SPX, NASDAQ, DXY, and Bitcoin reveals significant shifts in market dynamics and trends. While SPX and NASDAQ have transitioned from higher highs and higher lows to lower highs and lower lows, indicating a bearish trend, DXY stands out with a strong bullish momentum. DXY’s potential rise could have implications for financial markets, potentially leading to a sell-off in SPX and DXY.
Bitcoin has exhibited a degree of independence from traditional indices, showing a positive performance when SPX and NASDAQ experienced declines. As October unfolds, the technical indicators suggest that Bitcoin may be poised for an upward move, thanks to its structure of higher highs and higher lows in the shorter term, reinforced by RSI signals.
Market participants should remain vigilant and adapt to these changing trends, which may have important implications for investment strategies and portfolio management in the coming days and weeks.
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