The decline in the S&P 500 has been in progress since the start 2022, and is technically still in a decline until indicators prove otherwise.
We can see a consistent pattern of lower lows and lower highs, but early signs show that a support level may have disrupted this pattern.
In early October 2022, price hit the weekly 200 simple moving average which is acting as a strong support level. Since hitting this level, we have seen a bounce to the upside.
This current move up could still be followed by another decline because it has now hit the daily 200 simple moving average (not shown) and is reacting to this level as resistance and finding it slightly challenging to get through.
The $4000 round number is also acting as resistance, so we need to see if price will fail and fall back to support or even form lower lows.
A break above the cluster of resistance mentioned above should see the bull rally resume and continue the uptrend. This is when we will begin looking for long opportunities amongst our top stocks list to take advantage of the next leg of the bullish market.
Patience as always for now, but we are edging ever so closer to jumping into high-probability opportunities in the stock market.
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@ProjectSyndicate, yes it is but has the possibility of continuing to drop in price so risk and exit management has to be on point. We are trend followers so wait for the market to confirm a direction first. It reduces the chances of losses and increases the chances of making profit. Requires more patience though which is where people often fall short.
InvestMate
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I expect falls to continue
Sublime_Trading
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@InvestMate, it is a possibility given the weakness this year. However, this could be a pullback before further strength. Currently, the d200sma is acting as resistance and the w200sma is pushing price up. Our overall bias is bullish as the trend has been bullish since 2009 but we are standing aside until we get confirmation of a bull market before opening positions.