Failed Bear Flag Sets Bullish Tone | SPX Market Analysis 23rd Dec 2024

SPX Deeper Dive Analysis:

Friday’s session played out as one of the outlined scenarios—a failed bear flag. Overnight futures teased a bearish continuation, dropping 50+ points before a sharp rally into the open. By lunch, SPX had sailed through the bull trigger with bullish pulse bars lighting the way.

• Key Observations:
  • Morning Momentum: A strong upward move dominated the morning.
  • Afternoon Pullback: A lazy descent formed a notable wick on the daily chart, hinting at indecision.
  • Monday Outlook: Narrow-range day likely as markets pause post-rally.
• Current Market Dynamics:
  • Wide Bollinger Bands are contracting, signaling reduced volatility.
  • A shortened holiday week (Merry Christmas! ) means lighter trading volumes.
  • Bullish income swings, despite being challenged, are not far from being back to black with minimal/no action required.
• My Game Plan:
  • Short-Term: Expect consolidation near the current level.
  • Mid-Term: Watch for breakout setups after the pause.
  • Trades: Staying patient before committing to new positions.

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